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Sedona Company set the following standard costs for one unit of its product for 2015. Direct material (20 Ibs. @ $2.50 per Ib.) $ 50
Sedona Company set the following standard costs for one unit of its product for 2015. Direct material (20 Ibs. @ $2.50 per Ib.) $ 50 Direct labor (10 hrs. @ $8.00 per hr.) 80 Factory variable overhead (10 hrs. @ $4.00 per hr.) 40 Factory fixed overhead (10 hrs. @ $1.60 per hr.) 16 Standard cost $ 186
Sedona Company set the following standard costs for one unit of its product for 2015 Direct material (20 lbs. @ $2.50 per lb.) Direct labor (10 hrs. $8.00 per hr.) Factory variable overhead (10 hrs. $4.00 per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) 50 80 40 16 Standard cost $ 186 The $5.60 ($4.00 1 $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available perating Levels (% of capacity) 70% 35,000 350,000 75% Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 37,500 375,000 40,000 400,000 Variable overhead Fixed overhead $1,400,000 $1,500,000 1,600,000 600,000 600,000 600,000 Total overhead $2,000,000 $2,100,000 2,200,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred. (Do not round intermediate calculations. Round OH costs per hour" to2 sts per hour" to 2 decimal places.) Variable overhead costs Fixed overhead costs $1,375,000 628,600 Total overhead costs $2,003,600Step by Step Solution
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