8) Castleton Corporation manufactured 41,000 units during March. The following fixed overhead data relates to March:ActualStatic BudgetProduction41,000 units39,000 unitsMachine-hours6,020 hours5,850 hoursFixed overhead costs for March$125,500$117,000What is the amount of fixed overhead allocated to production? A) $128,210.13B) $117,000.00C) $125,500.00D) $123,000.00Answer: Explanation: Fixed overhead cost per machine hour = $117,000 ÷ 5,850 = $20Machine hours per unit = 5,850 ÷ 39,000 = 0.15Fixed overhead cost per unit = $20 × 0.15 = $3.00Fixed overhead allocated = 41,000 × $3.00 = $123,000.00
Diff: 3Objective: 4AACSB: Application of knowledge9) Castleton Corporation manufactured 36,500 units during March. The following fixed overhead data relates to March:ActualStatic BudgetProduction36,500 units35,000 unitsMachine-hours5,400 hours5,250 hoursFixed overhead costs for March$139,510$131,250What is the fixed overhead spending variance?
Diff: 2Objective: 4AACSB: Application of knowledge