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Juniper Company calculates its predetermined rates using practical volume, which is 300,000 units. The standard cost system allows two direct labour hours per unit produced.
Juniper Company calculates its predetermined rates using practical volume, which is 300,000 units. The standard cost system allows two direct labour hours per unit produced. Overhead is applied using direct labour hours. The total budgeted overhead is $3,200,000, of which $900,000 is fixed overhead.The actual results for the year are as follows:Units produced — 280,000Direct labour — 570,000 hours @ $9 per hourVariable overhead — $2,320,000Fixed overhead — $872,000Refer to Juniper Company. What is the predetermined fixed overhead rate?
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