Hockey Accessories Corporation manufactured 23,000 duffle bags during March. The following fixed overhead data pertain to March:

What is the amount of fixed overhead allocated to production?

Question

Hockey Accessories Corporation manufactured 23,000 duffle bags during March. The following fixed overhead data pertain to March:

What is the amount of fixed overhead allocated to production?

Quizplus · Accepted Answer

Fixed overhead cost per machine hour = $634,500 ÷ 14,100 = $45
Machine hours per unit = 14,100 ÷ 23,500 = 0.6
Fixed overhead cost per unit = $45 × 0.6 = $27.00
Fixed overhead allocated = 23,000 × $27.00 = $621,000

Hockey Accessories Corporation Manufactured 23,000 Duffle Bags During March