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1) Kiki Co. has total budgeted fixed over head of...

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1) Kiki Co. has total budgeted fixed over head of $100,000, and budgeted variable overhead of $20 per unit for the coming period. Expected sales are 40,000 units; expected production is 50,000 units; practical (maximum) capacity is 100,000 units. If Kiki Co. uses a normal costing system and a plantwide predetermined overhead rate, the budgeted overhead per unit is A) $22.50. B) $22.00. C) $21.00. D) none of the above (a, b, or c.) 2. Unused capacity costs should be A) allocated to all of the products using ABC. B) allocated to all of the products using traditional costing methods. C) reported as unused capacity and not allocated D) treated as a unit level cost and be allocated using ABC or traditional methods. THANK YOU!

 

Paper#1359 | Written in 18-Jul-2015

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