Question
The following information was taken from the annual manufacturing overhead cost budget of Pasco Manufacturing. Variable manufacturing overhead costs$92,400 Fixed manufacturing overhead costs$55,440 Normal production
The following information was taken from the annual manufacturing overhead cost budget of Pasco Manufacturing.
Variable manufacturing overhead costs$92,400
Fixed manufacturing overhead costs$55,440
Normal production level in labor hours30,800
Normal production level in units5,775
Standard labor hours per unit4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. What is Pasco's total overhead rate?
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