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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs:
Actual total factory overhead cost incurred | $ 36,000 |
---|---|
Actual fixed overhead cost incurred | $ 17,000 |
Budgeted fixed overhead cost | $ 13,000 |
Actual machine hours | 7,000 |
Standard machine hours allowed for the units manufactured | 4,600 |
Denominator volumemachine hours | 7,500 |
Standard variable overhead rate per machine hour | $ 3 |
The standard fixed overhead application rate, to two (2) decimal places, is
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