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OH Application Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: 56,000 61,600 67,200 72,800 Variable manufacturing overhead
OH Application Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: 56,000 61,600 67,200 72,800 Variable manufacturing overhead $112,000 $123,200 $134,400 $145,600 Fixed manufacturing overhead 455,000 455,000 455,000 455,000 Each product requires four hours of machine time and the company expects to produce 14,000 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 1,260 units and incurred $10,500 and $37,100 of variable and fixed overhead, respectively. a. What amount of variable manufacturing overhead should be applied to production in April? Applied VOHS 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 $ Check
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