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MOCK EXAM 2 pg 325 num 3

This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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May 11, 2021 at 7:19 pm #620336
Shi2004
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How to find the fixed cost sir?
May 12, 2021 at 7:55 am #620365
John Moffat
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Multiply the budgeted production by the fixed overhead per unit for each product, and add the two together.
If only P1 is made then the specific fixed costs for P2 will not occur, but the rest of the fixed costs will.
May 13, 2021 at 6:21 pm #620525
Shi2004
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Why if p1 is made the specific FC for p2 will not occur??
May 14, 2021 at 8:56 am #620553
John Moffat
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Because they will then not be making P2 and if they are not making P2 the specific fixed costs for P2 will not be incurred.
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