The following were among Gage Co.’s 2005 costs:
|
Normal spoilage |
$ |
5,000 |
|
Freight out |
10,000 |
|
|
Excess of actual manufacturing costs over standard costs |
20,000 |
|
|
Standard manufacturing costs |
100,000 |
|
|
Actual prime manufacturing costs |
80,000 |
Gage’s 2005 actual manufacturing overhead was
- $ 40,000
- $ 45,000
- $ 55,000
- $120,000