World Company expects to operate at 80% of its productive capacity of 66,250 units per month. At this planned level, the company expects to use 26,500 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 $53,000 fixed overhead cost and $331,250 variable overhead cost. In the current month, the company incurred $389,000 actual overhead and 23,500 actual labor hours while producing 50,000 units.(Round “OH costs per DL hour” to 2 decimal places.)

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Posted on May 27, 2016Author TutorCategories Question, Questions