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Butch Corporation manufactured 54,000 door hinges during September. The fixed-overhead cost allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to September:
Butch Corporation manufactured 54,000 door hinges during September. The fixed-overhead cost allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to September:
Actual
Static Budget
Production
54,000 units
60,000 units
Machine-hours
985 hours
1,150 hours
Fixed overhead costs for September
$40,385
$46,000
Required:What is the amount of fixed overhead allocated to production?(5 marks. 1 mark for correct multi-choice answer and 4 marks for showing calculations)
A) $41,400
B) $40,385
C) $46,000
D) $54,000
E) $47,150
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