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Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set. If 11,500 standard hours were allowed for actual production, applied fixed overhead is:____.
a. 33,300.b. 34,000.c. 34,500.d. not determinable without knowing the actual numbers of units produced.

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ayokenny2001

Answer:

C. $34,500

Explanation:

Given the above information, applied fixed overhead is computed as;

= Standard hours allowed for actual production × Predetermined rate

Standard hours allowed for actual production = 11,500

Predetermined rate = $3 per hour

Then,

Applied fixed overhead

= 11,500 hours × $3 per hour

= $34,500

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