Final answer:
To determine the Fixed Manufacturing Overhead (MFG OH) for unit product cost, divide the total fixed manufacturing overhead by the total number of units produced.
Step-by-step explanation:
To find Fixed Manufacturing Overhead (MFG OH) for unit product cost, you first need to know the total fixed manufacturing overhead costs for a given period. Then, you divide this total by the number of units produced in that period. The formula is:
Fixed Manufacturing Overhead per Unit = Total Fixed Manufacturing Overhead / Total Units Produced
This will give you the fixed manufacturing overhead cost allocated to each unit. For example, if a factory's total fixed manufacturing overhead for the month is $10,000 and they produce 2,000 units, the fixed manufacturing overhead per unit would be $5.00. It is important to note that fixed manufacturing overhead costs remain constant, regardless of the level of production.