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sport-in corporation manufactured 10,000 golf bags during april. the following fixed overhead data pertain to march: actual static budget production 20,000 units 20,500 units machine-hours 5,100 hours 6,150 hours fixed overhead cost for march $250,000 $258,300 what is the amount of fixed overhead allocated to production?

Answer :

$258300 would be the amount of fixed overhead cost allocated to production in this case.

What do you understand by fixed cost?

On the income statement, company expenses may be split down into direct, indirect, and capital expenditures. On the balance sheet, these expenses can be shown as short-term or long-term liabilities. The total cost structure of a company is made up of both fixed and variable costs.

Cost structure analysis comes in many forms, and it is used by cost analysts to examine both fixed and variable costs. Costs are typically a major determinant of overall profitability.

The term "fixed costs" refers to expenses that remain constant throughout time. Typically, schedules or business agreements create them. These are the fundamental expenses related to running a firm fully. Over the course of a contract or cost schedule, fixed costs remain constant after they have been defined.

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