Reference no: EM132523638
Question 1: The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:
Production volume. 1,000 units. 3,000 units
Direct materials. $13.20 per unit. $13.20 per unit
Direct labour $14.50 per unit $14.50 per unit
Manufacturing overhead. $65.40 per unit. $29.40 per unit
The best estimate of the total monthly fixed manufacturing cost is:
Question 2: Bedok Limited absorbs manufacturing overhead using machine hour. Budgeted machine manufacturing overhead and machine hours for the current period were anticipated to be $4,800,000 and 120,000 respectively.
However, the actual machine hours being worked was only 90,000, and manufacturing overhead incurred for the year was $4,180,000. On the basis of this information, the company's year-end overhead was ____________.
A. Over-absorbed by $580,000
B. Under-absorbed by $580,000
C. Over-absorbed by $620,000
D. Under-absorbed by $620,000