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Sedona Company set the following standard costs for one unit of its product for 2015. Direct material (30 lbs. @ $2.20 per lb) Direct labor
Sedona Company set the following standard costs for one unit of its product for 2015.
Direct material (30 lbs. @ $2.20 per lb) Direct labor (10 hrs.@ $4.60 per hr.) Factory variable overhead (10 hrs.@$3.00 per hr.) Factory fixed overhead (10 hrs. $1.50 per hr.) 66.00 46.00 30.00 15.00 Standard cost $157.00 The $4.50 ($3.00$1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 65,000 units per month. The following monthly flexible budget information is also available Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 65% 42,250 422,500 Operating Levels (% of capacity) 70% 455,000 75% 48,750 487,500 45,500 $1,267,500 $1,365,000 $1,462,500 Variable overhead Fixed overhead 682,500 682,500 682,500 Total overhead $1,950,000 $2,047,500 $2,145,000 During the current month, the company operated at 65% of capacity, employees worked 400,000 hours, and the folowing actual overhead costs were incurred. (Do not round intermediate calculations. Round "OH costs per hour" to 2 decimal places.) Variable overhead costs Fixed overhead costs $1,224,000 730,000 Total overhead costs $1,954,000Step by Step Solution
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