Question
standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given
standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator Level of Activity 9,000 DLHs Overhead Costs at the Denominator Activity Level: Variable Overhead Cost $90,700 Fixed Overhead Cost $102,800 The following data pertains to operations for the most recent period: Actual Hours 7,800 DLHs Standard Hours Allowed for the Actual Output 7,765 DLHs Actual Total Variable Overhead Cost $54,210 Actual Total Fixed Overhead Cost $100,200 Required: 1. What was the total predetermined overhead rate? 2. How much overhead was applied to products during the period?
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