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Business, 15.04.2020 00:32 NicoleParker

Fuller Company allocates manufacturing overhead based on machine hours. Each bike produced should require 4 machine hours. According to the static budget, the following is expected to incur: 2,200 machine hours per month (550 bikes x 4 hours per bike) $11,440 in variable manufacturing overhead costs $9,400 in fixed manufacturing overhead costs During January, Fuller Company actually used 2,100 machine hours to make 510 bikes. The company spent $6,800 in variable manufacturing overhead costs and $9,100 in fixed manufacturing overhead costs.

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