Mathematics · Cost and Management Accounting
Zola Co. has over-absorbed fixed production overheads for the period by $6,000. The fixed production overhead absorption rate was $8 per unit and is based on a budgeted normal level of activity of 5,000 units. If the actual production was 4,500 units, what was the actual fixed production overhead incurred for the period?
- 1$30,000✓
- 2$36,000
- 3$40,000
- 4$42,000
Correct answer
$30,000
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