Question

Castleton Corporation manufactured 41,000 units during March. The following fixed overhead data relates to March: Production Machine-hours Fixed overhead costs for March Actual 41,000 units 6,020 hours $125,500 Static Budget 39,000 units 5,850 hours $117,000 What is the amount of fixed overhead allocated to production?

Answer 1

Allocated MOH= $120,400

Step-by-step explanation:

Giving the following information:

The following fixed overhead data relates to March:

Actual 41,000 units 6,020 hours $125,500

Static Budget 39,000 units 5,850 hours $117,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 117,000/ 5850= $20 per hour

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20* 6,020= $120,400