Question
C. M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected
C. M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected that the company would produce 300 Falcon Aircraft for its clients with a factory overhead cost of $150,000,000. However, business was better than expected and the company was able to produce 400 aircraft at factory overhead cost of $175,000,000. What is the amount per unit that Falcon Aircraft has over- or underapplied factory overhead? Multiple Choice $62,500 overapplied. $62,500 underapplied. $125,000 overapplied. $125,000 underapplied. None of these answer choices are correct.
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