Osborne workbook question 3.9

Parki82Parki82 Posts: 43Registered
Sorry if I’m missing something but can someone clear this up for me?
I’m working through this task but can’t understand why we are including the fixed overheads in the formula.
Surely we need to remove them so 37300-7000= 30300
Divide by 10000 then x 10500 units then add the fixed costs back making the budgeted cost for actual production to be 38815???
But the answer is 39165 so they are including the fixed overheads in the above! Surely this is treating the fixed overheads as a variable cost???
What am I missing here??
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