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:

Total Contribution Margin

The difference between total sales revenue and total variable costs, representing the amount available to cover fixed expenses and generate profit.

Variable Cost

Costs that fluctuate with the level of production or sales, such as raw materials or commission fees.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales activities within a certain range or period.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.