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Amber Manufacturing produces ceramic teapots. Amber allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost
Amber Manufacturing produces ceramic teapots. Amber allocates overhead based on the number of direct labor hours. The company is looking into using a standard cost system and has developed the following standards (one "unit" is a batch of 100 teapots): Actual cost and operating data from the most recent month are as follows (Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. (Click the icon to view the standards) Data Table 1Data Table Purchased 4,500 pounds at a cost of $4.70 per pound Used 4,100 pounds in producing 60 batches Actual direct labor cost of $3,344 at an average direct labor cost per hour of $17.60 Actual variable MOH $1,406 Actual fixed MOH $1,490 Standards Direct material 60 pounds per batch at $5.00 per pound Direct labor 3 0 hours per batch at $17.00 per hour Variable MOH standard rate S7.00 per direct labor hour Predetermined fixed MOH standard rate $3.00 per direct labor hour Total budgeted fixed MOH cost $1,090 Print Done bers lar. Label the Print Done
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