Question

(c) Fixed cu
(d) Variable costs are zero when productions
42. The following data relate to two output levels of a department:
17.000
Machine Hours
18.500
Overheads )
2.46.500
2.51.750
The variable overhead rate per hour is? 3.50. The amount of fixed overheads is
(a) ​

Answer 1

Answer:

True, because fixed costs are incurred even when output is zero, while variable costs are incurred only after output production actually starts (so that variable costs are zero when output is zero).