Question
Ivanhoe Company has gathered the following information: Variable manufacturing overhead costs $14,220 Fixed manufacturing overhead costs $11,250 Normal production level in labour hours 9,000 Standard
Ivanhoe Company has gathered the following information: Variable manufacturing overhead costs $14,220 Fixed manufacturing overhead costs $11,250 Normal production level in labour hours 9,000 Standard labour hours 9,300 During the year, 3,500 units were produced, 10,400 hours were worked, and the actual manufacturing overhead was $22,400. Actual fixed overhead totalled $11,290. Ivanhoe applies overhead based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined overhead rates. (Round calculations and final answer to 2 decimal places, e.g. 15.25.)
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