Answer the Following Questions Using the Information Below:
Norman -Fixed Overhead Is:
A)under-Allocated by $3000

question 144

Multiple Choice

Answer the following questions using the information below:
Norman & Appleby Corporation manufactured 15 000 golf bags during March.The fixed overhead cost-allocation rate is $20.00 per machine-hour.The following fixed overhead data pertain to March:
$$\begin{array} { l r r } & \text { Actual } & \text { Static Budget } \\\text { Production } & 15000 \text { units } & 18000 \text { units } \\\text { Machine-hours } & 7650 \text { hours } & 9000 \text { hours } \\\text { Fixed overhead cost for March } & \$ 122000 & \$ 120000\end{array}$$
-Fixed overhead is:

• A)under-allocated by $3000.
• B)over-allocated by $3000.
• C)over-allocated by $28 000.
• D)under-allocated by $28 000.

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Definitions:

Maximum Discount Rate

The highest interest rate set by a central bank to lend money to financial institutions.

Internal Rate Of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.

Minimum Discount Rate

The lowest rate at which future cash flows are discounted to determine their present value.

Project

A deliberate arrangement of tasks that are interconnected, aimed to be finalized within a designated time frame and under particular cost and constraint conditions.