Awesome Athletics,Inc.has developed a new design to produce hurdles that are used in track and field competition.The company's hurdle design is innovative in that the hurdle yields when hit by a runner and its height is extraordinarily easy to adjust.Management estimates expected annual capacity to be 90,000 units; overhead is applied using expected annual capacity.The company's cost accountant predicts the following current year activities and related costs:
Other than any possible under- or overapplied fixed overhead,management expects no variances from the previous manufacturing costs.Under- or overapplied fixed overhead is to be written off to Cost of Goods Sold.
Required:

Question

Awesome Athletics,Inc.has developed a new design to produce hurdles that are used in track and field competition.The company's hurdle design is innovative in that the hurdle yields when hit by a runner and its height is extraordinarily easy to adjust.Management estimates expected annual capacity to be 90,000 units; overhead is applied using expected annual capacity.The company's cost accountant predicts the following current year activities and related costs:
  Other than any possible under- or overapplied fixed overhead,management expects no variances from the previous manufacturing costs.Under- or overapplied fixed overhead is to be written off to Cost of Goods Sold.
Required:

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The Answer of Awesome Athletics,Inc.has developed a new design to produce hurdles that are used in track and field competition.The company's hurdle design is innovative in that the hurdle yields when hit by a runner and its height is extraordinarily easy to adjust.Management estimates expected annual capacity to be 90,000 units; overhead is applied using expected annual capacity.The company's cost accountant predicts the following current year activities and related costs:
  Other than any possible under- or overapplied fixed overhead,management expects no variances from the previous manufacturing costs.Under- or overapplied fixed overhead is to be written off to Cost of Goods Sold.
Required: