Yummy bakes (Pty) Ltd is a company that bakes cakes. The company budgeted to bake 1 500 cakes and budgeted fixed manufacturing overheads (FMO) were R112 500 in the year 2022. Actual results revealed that the company produced 1 300 cakes and incurred R95 000 of fixed manufacturing overheads. What is the predetermined FMO recovery rate per unit? a. R75 per unit b. R73 per unit c. R63 per unit d. R86 per unit   Please don't provide answer in image format thank you

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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Yummy bakes (Pty) Ltd is a company that bakes cakes. The company budgeted to bake 1 500 cakes and budgeted fixed manufacturing overheads (FMO) were R112 500 in the year 2022. Actual results revealed that the company produced 1 300 cakes and incurred R95 000 of fixed manufacturing overheads. What is the predetermined FMO recovery rate per unit?

a. R75 per unit

b. R73 per unit

c. R63 per unit

d. R86 per unit

 

Please don't provide answer in image format thank you 

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