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?

Question

Business

Noel Wilkerson

9 October, 03:35

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?

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Giovanny Cummings · Answer 1

Allocated MOH = $120,400

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