Question
I need detailed help with steps on how to solve, and not just an answer, and also where each number comes from, be ready for
I need detailed help with steps on how to solve, and not just an answer, and also where each number comes from, be ready for follow up questions :
The Murphy Company makes and sells smoke detectors. The company uses standard costing, with overhead costs applied on the basis of direct labor hours. The following is extracted from the flexible budget for 2006 :
Detectors Produced : 40,000
Direct Labor Hours : 56,000
Variable Overhead Cost : $252,000
Fixed Overhead Cost : $672,000
At the beginning of 2006 , the company expected to produce 40,000 detectors in 2006. The actual results for the year are below :
Number of Detectors Produced : 43,200
Direct Labor Hours Worked : 62,640
Variable Overhead Cost : $278,748
Fixed Overhead Cost : $714,000
Question : Respectively, what fixed and variable overhead costs did company apply to detectors produced ?
A) 725,760 & 272,160
B) 700,000 & 325,202
C) 731,292 & 294,202
D) 724,292 & 311,090
Answer was A) but I need EXACT HELP WITH STEPS AS TO HOW :)
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