Question
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March:
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March: Actually incurred Production of 10,000 units, Actual Machine-hours of 5,100 hours and Actual Fixed overhead cost for March of $244,000. Static Budgets was Production of 12,000 units, Machine-hours of 6,000 hours and Fixed overhead cost for March of $240,000. Fixed overhead is:
overallocated by $44,000
overallocated by $4,000
underallocated by $4,000
underallocated by $44,000
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