Calculate the under- or over applied variable


Question:

(OH application) Use the information in Exercise 11 and assume that Lansing Mfg. has decided to use units of production to apply overhead to production. In April 2010, the company produced 875 units and incurred $7,500 and $26,500 of variable and ?xed overhead, respectively.

a. What amount of variable manufacturing overhead should be applied to production in April 2010?

b. What amount of ?xed manufacturing overhead should be applied to production in April 2010?

c. Calculate the under- or over applied variable and ?xed overhead for April 2010.

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Accounting Basics: Calculate the under- or over applied variable
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