Assume that a company uses a standard cost system and applies overhead to production based...
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Accounting
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:
Total budgeted fixed overhead cost for the year
$ 318,000
Actual fixed overhead cost for the year
$ 276,000
Budgeted direct labor-hours
60,000
Actual direct labor-hours
56,000
Standard direct labor-hours allowed for the actual output
58,000
The fixed portion of the predetermined overhead rate is closest to:
A) $5.30
B) $4.90
C) $5.68
D) $5.23
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