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Megan, Inc. uses the following standard costs per unit for one of its products: Direct labor (2.0 hrs. @ $5.00/hr.) = $10.00; overhead (2.0 hrs.
Megan, Inc. uses the following standard costs per unit for one of its products: Direct labor (2.0 hrs. @ $5.00/hr.) = $10.00; overhead (2.0 hrs. @ $2.50/hr.) = $5.00. The flexible budget for overhead is $160,000 plus $1.00 per direct labor hour (DLH). Actual data for the past month show total overhead costs of $223,000, total fixed overhead of $113,000, 91,000 hours worked, and 47,000 units produced. What is the budgeted denominator activity level for Megan, Inc., in direct labor hours (DLHS), to the nearest whole number? Multiple Choice 50,667 O 74,667. O 86,667 O O 106,667 126,667. O
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