Question
27) World Company expects to operate at 70% of its productive capacity of 21,000 units per month. At this planned level, the company expects to
27)
World Company expects to operate at 70% of its productive capacity of 21,000 units per month. At this planned level, the company expects to use 14,700 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 70% capacity level, the total budgeted cost includes $44,100 fixed overhead cost and $279,300 variable overhead cost. In the current month, the company incurred $600,800 actual overhead and 14,400 actual labor hours while producing 26,900 units.(Do not round intermediate calculations. Round "OH costs per DL hour"to 2 decimal places.) |
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