Question
The normal capacity of Yule Company is 5,000 units per month. At this volume, budgeted fixed and variable factory overhead are $25,000 and $20,000, respectively.
The normal capacity of Yule Company is 5,000 units per month. At this volume, budgeted fixed and variable factory overhead are $25,000 and $20,000, respectively. In December, actual production was 4,800 units and actual overhead incurred was $46,300.
What is the factory overhead application rate at the actual level of production (rounded to the nearest penny)?
| a. | $9.00 |
| b. | $9.21 |
| c. | $8.80 |
| d. | $9.26 |
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Construction Guide Accounting And Knowledge Based Audits
Authors: CPA Eric P. Wallace
1st Edition
0808020870, 978-0808020875
