Use the Below Information to Answer the Following Questions:
Bekits

question 106

Multiple Choice

Use the below information to answer the following questions:
Bekits Corporation manufactured 25,000 grooming kits for horses during March. The following fixed overhead data relates to March:
$\begin{array}{lrr}&\text { Actual }&\text { Static Budget }\\\text { Production } & 37,500 \text { units } & 36,000 \text { units } \\\text { Machine-hours } & 6,100 \text { hours } & 5,940 \text { hours } \\\text { Fixed overhead costs for March } & \$ 133,000 & \$ 124,740\end{array}$
-What is the amount of fixed overhead allocated to production?

• A) $134,375.50
• B) $124,740.00
• C) $133,000.00
• D) $129,937.50

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Definitions:

Surplus

An excess of supply over demand in a market, typically leading to lower prices.

Price Floor

A government or group-imposed price control that sets the minimum allowed price for a particular good or service, intended to ensure fair conditions for producers.

Market Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Surplus

Surplus is a condition where the quantity supplied of a product exceeds the quantity demanded at a specific price, often leading to decreases in price.