Budgeted Fixed OH $125,000

Budgeted production 50,000 units

Budgeted dl-hours 62,500 dl-hours

Actual production 52,000 units

Actual dl-hours 78,000 dl-hours

Calculate Predetermined rate based upon unit production:

1. Fixed OH:___________________________________

If actual Fixed OH is $150,000, is Fixed OH over- or under-applied? If so, by how much?

What if actual Fixed OH is $100,000?

b. ________________________________________

Calculate Predetermined rate based upon dl-hours:

1. Fixed OH:___________________________________
2. Using normal costing, if actual Fixed OH is $150,000, is Fixed OH over- or under-applied? If so, by how much? What if actual Fixed OH is $100,000?________________________________________