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Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 97,000 direct-labor hours as follows:
Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 97,000 direct-labor hours as follows: Standard costs per unit (one box of paper): Variable overhead (3 direct-labor hours $6) Fixed overhead (3 direct-labor hours $8) Total $18 $42 During April, 35,000 units were scheduled for production: however, only 29,000 units were actually produced. The following data relate to April 1. Actual direct-labor cost incurred was $2,576,000 for 92,000 actual hours of work. 2. Actual overhead incurred totaled $1,270,400, of which $570,400 was variable and $700,000 was fixed
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