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EKPN Company

question 31

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EKPN Company prepared the following data in its static budget based on 150,000 machine hours:  Direct Materials $450,000 Direct Labour 225,000 Variable Overhead 1,125,000 Fixed Overhead 2,100,000 Actual Results:  Machine Hours  Direct Materials $60,000 hours  Direct Labour $475,000 Variable Overhead 245,000 Fixed Overhead 1,150,0002,110,000\begin{array}{lr}\text { Direct Materials } & \$ 450,000 \\\text { Direct Labour } & 225,000 \\\text { Variable Overhead } & 1,125,000 \\\text { Fixed Overhead } & 2,100,000\\\\\text { Actual Results: } \\\text { Machine Hours } & \\\text { Direct Materials } & \$ 60,000 \text { hours } \\\text { Direct Labour } & \$ 475,000 \\\text { Variable Overhead } & 245,000 \\\text { Fixed Overhead } & 1,150,000 \\& 2,110,000\end{array}
-What is the budgeted Fixed Overhead at the actual level of activity?


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