11-10100 points World Company expects to operate at 80% of its productive capaci
ID: 2584497 • Letter: 1
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11-10100 points World Company expects to operate at 80% of its productive capacity of 50,000 units per month At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual labor hours while producing 35,000 units. (Do not round your intermediate calculations.) e the overhead application rate for total overhead 11.00 per DL hr 2.00 per DL hr 13.00 per DL hr Fixed overhead costs (2) C the total overhead variance units OH Standard DL Overhead Costs Actual Results Variance 11.00 2.00 13.00 Prede Fav/Unf. Hours Variable overhead costs Fixed overhead costs Total overhead costs Hints References eBook & ResourcesExplanation / Answer
*Budgeted Cost / Standard hours of direct labor.
(1) Compute the overhead application rate for total overhead Predetermined OH Rate* Variable Overhead Costs $11 per DL hr. Fixed Overhead Costs $2 per DL hr. Total Overhead Costs $13 per DL hr.Related Questions
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