Hasselbacher Industries Ltd. has fixed production overhead costs of $150,000. In a normal year, the company produces 100,000 units of product, which results in a fixed overhead allocation of $1.50 per unit.
Required:
a. If the company produces 105,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?
b. If the company produces 30,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?
c. If the company produces 160,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?
