C. M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected that the company would produce 340 Falcon Aircraft for its clients with a factory overhead cost of $172,720,000. However, business was better than expected and the company was able to produce 440 aircraft at factory overhead cost of $194,964,000. What is the amount per unit that Falcon Aircraft has over- or underapplied factory overhead?

C. M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected that the company would produce 340 Falcon Aircraft for its clients with a factory overhead cost of $172,720,000. However, business was better than expected and the company was able to produce 440 aircraft at factory overhead cost of $194,964,000. What is the amount per unit that Falcon Aircraft has over- or underapplied factory overhead?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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