Hello, Silverstone's production budget for July called for making 39,800 units of a single product.  The firm's production standards allow one-half of a machine hour per unit produced.  The fixed overhead budget for July was $35,024.  Silverstone uses an absorption costing system.  Actual activity and costs for July were: Units produced 36,754 Fixed overhead costs incurred $37,700 a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July.  (Round your answer to 2 decimal places.   Predetermined overhead application rate ??? per machine hour. b. Calculate the fixed overhead applied to work in progress during July.  (Do not round intermediate calculations). Applied overhead:  ??? c. Calculate the over- or underapplied fixed overhead for July.  (Do not round intermediate calculations). Fixed overhead:  ???

Question

Hello,

Silverstone's production budget for July called for making 39,800 units of a single product.  The firm's production standards allow one-half of a machine hour per unit produced.  The fixed overhead budget for July was $35,024.  Silverstone uses an absorption costing system.  Actual activity and costs for July were:

Units produced 36,754
Fixed overhead costs incurred $37,700

a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July.  (Round your answer to 2 decimal places.  

Predetermined overhead application rate ??? per machine hour.

b. Calculate the fixed overhead applied to work in progress during July.  (Do not round intermediate calculations).

Applied overhead:  ???

c. Calculate the over- or underapplied fixed overhead for July.  (Do not round intermediate calculations).

Fixed overhead:  ???

 

 

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