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Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: Each product requires four hours of machine time and the
Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: Each product requires four hours of machine time and the company expects to produce 10,000 units for the year. Assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April of the current year, the company produced 900 units and incurred $7,500 and $26,500 of variable and fixed overhead, respectively. a. What amount of variable manufacturing overhead should be applied to production in April? Applied VOH$ b. What amount of fixed manufacturing overhead should be applied to production in April? Applied FOH \$ c. Calculate the under- or overapplied variable and fixed overhead for April. Note: Do not use negative signs with your answers. c. Calculate the under- or overapplied variable and fixed overhead for April. Note: Do not use negative signs with your answers
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