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Buddy's Corporation uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs to products based on the number of machine hours. Last
Buddy's Corporation uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs to products based on the number of machine hours. Last year Buddy incurred a total actual FMO $53,000 when produced 12,000 units. The FMO was over-applied by $7,000. When analyzing the cost variances, the chief accountant determined that there was a favorable $5,780 FMO production volume variance.
1) What was Buddy's budgeted production level in units for the past year?
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