Question
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:
| Total budgeted fixed overhead cost for the year | $ | 285,000 | |
| Actual fixed overhead cost for the year | $ | 276,000 | |
| Budgeted direct labor-hours | 60,000 | ||
| Actual direct labor-hours | 56,000 | ||
| Standard direct labor-hours allowed for the actual output | 58,000 | ||
The fixed portion of the predetermined overhead rate is closest to:
Multiple Choice
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$4.75.
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$4.35.
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$5.09.
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$4.68.
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Advanced Level Audit Q And A 2014
Authors: ACA Simplified
1st Edition
1500852538, 978-1500852535
