Use the information in Exercise E3-11 and 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 900 units and incurred \(\$ 7,500\) and \(\$ 26,500\) of variable and fixed overhead, respectively.

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

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

c. Calculate the under- or overapplied variable and fixed overhead for April.

Data From Exercise E3-11:-

Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of machine hours:

Each product requires four hours of machine time, and the company expects to produce 10,000 units for the year. Production is expected to be evenly distributed throughout the year.

Transcribed Image Text:

Variable manufacturing overhead.. Fixed manufacturing overhead.. 40,000 $ 80,000 325,000 44,000 $ 88,000 325,000 48,000 52,000 $ 96,000 $104,000 325,000 325,000