Question: The overhead application rate for a company is $10 per unit, made up of $6 per unit of fixed overhead and $4 per unit of

The overhead application rate for a company is $10 per unit, made up of $6 per unit of fixed overhead and $4 per unit of variable over- head. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of $2,500. Actual overhead for the month was $110,000 and actual units produced were 13,125.
Based on this information, determine the amount of the budgeted overhead for the actual level of production.

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