Question

4) Which of the following is the mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base?

A) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
C) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base
D) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base

Answer 1

The correct mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base is option B. It represents the budgeted amount of fixed overhead cost allocated to each unit of the cost allocation base.

Step-by-step explanation:

The correct mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base is option B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base. This expression represents the budgeted amount of fixed overhead cost allocated to each unit of the cost allocation base.