Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: 60,000 66,000 72,000 78,000 Variable manufacturing overhead $120,000 $132,000 $144,000 $156,000 Fixed manufacturing overhead 487,500 487,500 487,500 487,500 Each product requires four hours of machine time and the company expects to produce 15,000 units for the year. Assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April of the current year, the company produced 1,350 units and incurred $11,250 and $39,750 of variable and fixed overhead, respectively. a. What amount of variable manufacturing overhead should be applied to production in April? Applied VOH $Answer b. What amount of fixed manufacturing overhead should be applied to production in April? Applied FOH $Answer c. Calculate the under- or overapplied variable and fixed overhead for April. Note: Do not use negative signs with your answers. Variable OH Answer AnswerOverappliedUnderappliedNeither over- or underapplied Fixed OH Answer AnswerOverappliedUnderappliedNeither over- or underapplied Please answer all parts of the question.
Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours: 60,000 66,000 72,000 78,000 Variable manufacturing overhead $120,000 $132,000 $144,000 $156,000 Fixed manufacturing overhead 487,500 487,500 487,500 487,500 Each product requires four hours of machine time and the company expects to produce 15,000 units for the year. Assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April of the current year, the company produced 1,350 units and incurred $11,250 and $39,750 of variable and fixed overhead, respectively. a. What amount of variable manufacturing overhead should be applied to production in April? Applied VOH $Answer b. What amount of fixed manufacturing overhead should be applied to production in April? Applied FOH $Answer c. Calculate the under- or overapplied variable and fixed overhead for April. Note: Do not use negative signs with your answers. Variable OH Answer AnswerOverappliedUnderappliedNeither over- or underapplied Fixed OH Answer AnswerOverappliedUnderappliedNeither over- or underapplied Please answer all parts of the question.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
OH Application
Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours:
| 60,000 | 66,000 | 72,000 | 78,000 | |
|---|---|---|---|---|
| Variable manufacturing |
$120,000 | $132,000 | $144,000 | $156,000 |
| Fixed manufacturing overhead | 487,500 | 487,500 | 487,500 | 487,500 |
Each product requires four hours of machine time and the company expects to produce 15,000 units for the year. Assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April of the current year, the company produced 1,350 units and incurred $11,250 and $39,750 of variable and fixed overhead, respectively.
a. What amount of variable manufacturing overhead should be applied to production in April?
Applied VOH $Answer
b. What amount of fixed manufacturing overhead should be applied to production in April?
Applied FOH $Answer
c. Calculate the under- or overapplied variable and fixed overhead for April.
Note: Do not use negative signs with your answers.
| Variable OH | Answer | AnswerOverappliedUnderappliedNeither over- or underapplied |
| Fixed OH | Answer | AnswerOverappliedUnderappliedNeither over- or underapplied |
Please answer all parts of the question.
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