Fixed overhead is

ACCOUNTING

Multiple Choice

Matthew’s Corporation manufactured 10,000 golf bags during March. The fixed overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March.

Actual Static Budget

Production 10,000 units 12,000 units

Machine-hours 5,100 hours 6,000 hours

Fixed overhead cost for March $122,000 $120,000


Fixed overhead is

a. overallocated by $2,000.

b. underallocated by $2,000.

c. overallocated by $22,000.

d. underallocated by $22,000.

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