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

  1. $ 40,000
  2. $ 45,000
  3. $ 55,000
  4. $120,000