Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E. Needles

5th Edition

0395698022, 978-0395698020

More Books

Students also viewed these Accounting questions