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

Costs and cost behaviour — practice question

A business has provided the information below: April: $34000$ machine hours, overheads $493000$ May: $67000$ machine hours, overheads $625000$ The variable overhead rate for each machine hour was $4$. What was the fixed overhead cost per month?

  • A$132000$
  • B$136000$
  • C$268000$
  • D$357000$

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