Answer the following questions using the information below:
Melbourne Corporation manufactured 57 000 door jambs during September.The fixed-overhead cost-allocation rate is $50.00 per machine-hour.The following fixed overhead data pertain to September:
$$\begin{array} { l r r }
& \text { Actual } & \text { Static Budget } \
\text { Production } & 57000 \text { units } & 60000 \text { units } \
\text { Machine-hours } & 985 \text { hours } & 1200 \text { hours } \
\text { Fixed overhead costs for September } & \$ 54300 & \$ 60000
\end{array}$$
-What is the amount of fixed overhead allocated to production?
A)$57 000
B)$54 300
C)$60 000
D)$100 000

Question

Answer the following questions using the information below:
Melbourne Corporation manufactured 57 000 door jambs during September.The fixed-overhead cost-allocation rate is $50.00 per machine-hour.The following fixed overhead data pertain to September:
 $$\begin{array} { l r r } 
& \text { Actual } & \text { Static Budget } \
\text { Production } & 57000 \text { units } & 60000 \text { units } \
\text { Machine-hours } & 985 \text { hours } & 1200 \text { hours } \
\text { Fixed overhead costs for September } & \$ 54300 & \$ 60000
\end{array}$$
-What is the amount of fixed overhead allocated to production?
A)$57 000
B)$54 300
C)$60 000
D)$100 000

Quizplus · Accepted Answer

Fixed overhead allocated to production remains constant regardless of the level of production, so it is the amount initially budgeted or set aside for overhead costs.

Answer the Following Questions Using the Information Below: Melbourne Corporation

Answer the Following Questions Using the Information Below:
Melbourne Corporation