multiple choice question\nto calculate manufacturing overhead cost per unit using abc, divide the total…

multiple choice question\nto calculate manufacturing overhead cost per unit using abc, divide the total \n\no manufacturing overhead cost by the number of units produced\no unit - level manufacturing overhead by the number of units produced and exclude batch-, product-, and facility - level costs\no manufacturing overhead cost by the number of units sold\no unit - level manufacturing overhead by the number of units sold and exclude batch-, product-, and facility - level costs

multiple choice question\nto calculate manufacturing overhead cost per unit using abc, divide the total \n\no manufacturing overhead cost by the number of units produced\no unit - level manufacturing overhead by the number of units produced and exclude batch-, product-, and facility - level costs\no manufacturing overhead cost by the number of units sold\no unit - level manufacturing overhead by the number of units sold and exclude batch-, product-, and facility - level costs

Answer

Explanation:

Step1: Recall ABC concept

Activity - Based Costing (ABC) allocates overhead based on activities. To find the manufacturing overhead cost per unit, we consider the total manufacturing overhead cost related to production and divide by the number of units produced. We don't consider units sold as we are calculating cost per unit produced, and we don't exclude batch - product - and facility - level costs when calculating total manufacturing overhead cost per unit in a basic sense.

Answer:

manufacturing overhead cost by the number of units produced