Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A manufacturer reports the following overheads at two different production levels. The total overheads and output levels are: - total overheads $\$400\,000$ when production is $40\,000$ units - total overheads $\$432\,000$ when production is $60\,000$ units What is the total fixed overhead cost?

  • A$\$32\,000$
  • B$\$96\,000$
  • C$\$336\,000$
  • D$\$432\,000$

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