A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours...
60.1K
Verified Solution
Link Copied!
Question
Accounting
A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Level of activity
2,700
DLHs
Overhead costs at the denominator activity level:
Variable overhead cost
$
8,900
Fixed overhead cost
$
36,625
The following data pertain to operations for the most recent period:
Actual hours
3,000
DLHs
Standard hours allowed for the actual output
2,612
DLHs
Actual total variable manufacturing overhead cost
$
9,500
Actual total fixed manufacturing overhead cost
$
37,025
What is the predetermined overhead rate to the nearest cent?
$15.51.
$15.18.
$17.23.
$16.86.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
