BackFill Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. According
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BackFill Systems allocates manufacturing overhead based on machine hours. Each connector should require 11 machine hours. According to the static budget, BackFill expected to incur: 1,045 machine hours per month (95 connectors X 11 machine hours per connector) \($5,650\) in variable manufacturing overhead costs \($7,900\) in fixed manufacturing overhead costs During August, BackFill actually used 865 machine hours to make the 78 connectors.
BackFill’s predetermined standard total manufacturing overhead rate is
a. \($12.97\) per machine hour.
b. \($15.66\) per machine hour.
c. \($7.56\) per machine hour.
d. \($5.41\) per machine hour.
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Related Book For
Financial And Managerial Accounting
ISBN: 9780135080191
2nd Edition
Authors: Charles T Horngren, Jr Walter T Harrison
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