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Edelweiss Company uses a standard costing system and applies its fixed manufacturing overhead (FMOH) costs to products based on the number of labor hours. Some data for last year are given below: The FMOH was overapplied by $2000.
Actual FMOH costs $48,000
Actual production 5,000 units
Volume variance $4,000 favorable
Determine the budgeted production level in units for the past year.
A. 5,000 units
B. 4,800 units
C. 4,792 units
D. 4,600 units
E. Need more information
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Answers: 3
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