Matthew's Corporation manufactured 10,000 golf bags during March. The fixed overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March:
Actual Static Budget
Production 10,000 units 12,000 units
Machine-hours 5,100 hours 6,000 hours
Fixed overhead cost for March $122,000 $120,000
a. What is the flexible-budget amount?
b. What is the amount of fixed overhead allocated to production?
c. What is the fixed overhead production-volume variance?
d. Determine the fixed overhead's overallocated or underallocated amount.