Hockey Accessories Corporation manufactured 23,000 duffle bags during March.The following fixed overhead data pertain to March:
$\begin{array}{lll}& \text { Actual } & \text { Static Buidget } \
\text { Production } & 23,000 \text { units } & 23,500 \text { units } \
\text { Machine-hours } & 13,100 \text { hours } & 14,100 \text { hours } \
\text { Fixed overhead cost for March } & \$ 626,100 & \$ 634,500
\end{array}$
What is the amount of fixed overhead allocated to production?

Question

Quizplus · Accepted Answer

The fixed overhead allocated to production is based on the budgeted fixed overhead rate per unit, which is calculated from the static budget. The rate is $634,500 / 23,500 units = $27 per unit. For 23,000 units produced, the allocated fixed overhead is 23,000 units * $27 = $621,000.

Hockey Accessories Corporation Manufactured 23,000 Duffle Bags During March What Is the Amount of Fixed Overhead Allocated to Production