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Pierce company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor hours. Below
Pierce company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor hours. Below is the standard cost card for the product. Direct materials 17.10 4.5 feet at 3.80 per foot Direct labor 28.50 3.0 DLHs at 9.50 per DLH Factory overhead 24.00 3.0 DLHs at 8.00 per DLH Last year, the company produced 6000 units of product using 17000 direct labor hours the actual toal fixed overhead cost for the year was 140,000 and the volume variance was12000 favorable. Compute the level of activity in terms of direct labor hours, that the company used in computing predetermined overhead rates
Pierce company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor hours. Below is the standard cost card for the product.
Direct materials 17.10
4.5 feet at 3.80 per foot
Direct labor 28.50
3.0 DLHs at 9.50 per DLH
Factory overhead 24.00
3.0 DLHs at 8.00 per DLH
Last year, the company produced 6000 units of product using 17000 direct labor hours the actual toal fixed overhead cost for the year was 140,000 and the volume variance was12000 favorable. Compute the level of activity in terms of direct labor hours, that the company used in computing predetermined overhead rates
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