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    Fixed Factory Overhead

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    If a factory is not operating at full capacity, and does not have the potential business to use up the remainder of its capacity, which cost should be ignored in a decision to produce additional units of product?

    variable selling expenses
    fixed factory overhead
    direct labor
    contribution margin of additional units

    Why?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:12 pm ad1c9bdddf
    https://brainmass.com/business/management-accounting/fixed-factory-overhead-152129

    Solution Summary

    This posting provides a solution to a question regarding costs for operating a factory.

    $2.49

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