Question
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output
| Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: |
| Total budgeted fixed overhead cost for the year | $515,900 |
| Actual fixed overhead cost for the year | $509,000 |
| Budgeted standard direct labor-hours (denominator level of activity) | 67,000 |
| Actual direct labor-hours | 68,000 |
| Standard direct labor-hours allowed for the actual output | 65,000 |
| Required: | |
| 1. | Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.) |
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Auditing And Financial Management Actions Taken By DOD On GAO Recommendations To Improve Spare Parts Requirements Determination NSIAD 85 61
Authors: U.S. Government Accountability Office
1st Edition
1287183859, 978-1287183853
