Answer the Following Questions Using the Information Below:
Healesville Animal

question 120

Multiple Choice

Answer the following questions using the information below:
Healesville Animal Products manufactured 32 000 horse grooming kits during 2018.The fixed-overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to 2018:
$$\begin{array} { l r r } & \text { Actual } & \text { Static Budget } \\\text { Production } & 32000 \text { units } & 30000 \text { units } \\\text { Machine-hours } & 6100 \text { hours } & 6000 \text { hours } \\\text { Fixed overhead costs for } 2018 & \$ 123000 & \$ 120000\end{array}$$
-What is the amount of fixed overhead allocated to production?

• A)$120 000
• B)$122 000
• C)$123 000
• D)$128 000

---

Definitions:

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including equity, debt, and long-term liabilities.

Transfer Pricing Policy

Regulations and practices concerning the pricing of goods, services, and intangibles transferred within an organization between different business units or divisions.