Castleton Corporation manufactured 41,000 units during March. The following fixed overhead data relates to March:

What is the amount of fixed overhead allocated to production?
A) $128,210.13
B) $117,000.00
C) $125,500.00
D) $123,000.00

Question

Castleton Corporation manufactured 41,000 units during March. The following fixed overhead data relates to March:

What is the amount of fixed overhead allocated to production?
A) $128,210.13 
B) $117,000.00 
C) $125,500.00 
D) $123,000.00

Quizplus · Accepted Answer

Fixed overhead cost per machine hour = $117,000 ÷ 5,850 = $20
Machine hours per unit = 5,850 ÷ 39,000 = 0.15
Fixed overhead cost per unit = $20 × 0.15 = $3.00
Fixed overhead allocated = 41,000 × $3.00 = $123,000.00

Castleton Corporation Manufactured 41,000 Units During March