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 | $273,000 |
|---|---|
| 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
a. $4.55.
b. $4.15.
c. $4.88.
d. $4.48.
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Clinical Audit For Doctors
Authors: Dr. Bob Ghosh, Sir Liam Donalson, Dr. Chen Sheng Low, Margaret Keane, Dr. Bhoresh Dhamija
1st Edition
1906839018, 978-1906839017
