Question
Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: 8,000 8,800 9,600 10,400 Variable manufacturing overhead $16,000 $17,600 $19,200
Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours:
8,000 | 8,800 | 9,600 | 10,400 | |
---|---|---|---|---|
Variable manufacturing overhead | $16,000 | $17,600 | $19,200 | $20,800 |
Fixed manufacturing overhead | 65,000 | 65,000 | 65,000 | 65,000 |
Each product requires four hours of machine time and the company expects to produce 2,000 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 180 units and incurred $1,500 and $5,300 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.
Variable OH | ||
Fixed OH |
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