OH Application

Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours:

	60,000	66,000	72,000	78,000
Variable manufacturing overhead	$120,000	$132,000	$144,000	$156,000
Fixed manufacturing overhead	487,500	487,500	487,500	487,500

Each product requires four hours of machine time and the company expects to produce 15,000 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 1,350 units and incurred $11,250 and $39,750 of variable and fixed overhead, respectively. a. What amount of variable manufacturing overhead should be applied to production in April? Applied VOH $Answer b. What amount of fixed manufacturing overhead should be applied to production in April? Applied FOH $Answer c. Calculate the under- or overapplied variable and fixed overhead for April. Note: Do not use negative signs with your answers.

Variable OH	Answer	AnswerOverappliedUnderappliedNeither over- or underapplied
Fixed OH	Answer	AnswerOverappliedUnderappliedNeither over- or underapplied

Please answer all parts of the question.