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Hi,
I am looking at a specimen paper (Kaplan exam kit) and the question includesGeneral fixed overheads at 10% of total production cost – $1211
In general I understand fixed overheads are not relevant as they are not incremental, but in this case, it is incremental because as production increases, so does fixed overhead cost? Or are we saying it is $1211, which incidentally is 10%. If anything changes, it will remain at $1211 but maybe not at 10%.
Thanks!
I do not have the Kaplan Kit (only the BPP Revision Kit) and so I cannot really help you without seeing the whole question.
If it is marked as being a past exam question then tell me the name and the date of the exam – then I will be able to find it because I do have all past exam questions 🙂
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