Answer:
Actual units produced: 9,500
Explanation:
actual units x overhead rate - actual factory overhead = underapplied
the underapplied overhead means the actual overhead was greater than applied overhead so we can build the formula as follow:
actual units x r - 39,500 = -1,500
<em><u>We need to calculate the rate for overhead:</u></em>
on the budget total overhead:
10,000 fixed + 30,000 variable = 50,000
and units are 10,000
so rate = 40,000 / 10,000 = 4
<u>Now we return to the formula:</u>
actual units x 4 - 39,500 = -1,500
actual units = (39,500 - 1,500 ) / 4
actual units = 38,000 / 4 = 9,500
