Fredin Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$80,400 Budgeted fixed manufacturing overhead 185,700 Total budgeted manufacturing overhead $ 266,100 Budgeted production (a) 15,000unitsStandard hours per unit (b) 2.00labor-hoursBudgeted hours (a) × (b) 30,000labor-hoursThe variable component of the predetermined overhead rate is closest to:
A. $2.68 per labor-hour
B. $2.93 per labor-hour
C. $2.41 per labor-hour
D. $3.02 per labor-hour
Answer: A
You might also like to view...
If actual overhead exceeds applied overhead, factory overhead is said to be underapplied
Indicate whether the statement is true or false
The stages a product goes through from the time it is first introduced to the market until it is discontinued is called the:
A) natural evolution B) amortization C) position D) product life cycle E) specific feature
What are visas? How many types of visas are allowed with respect to duration?
What will be an ideal response?
A British-made component costs 36 U.K. pounds. A company in the United States needs to buy
these components and the current indirect quote indicates that one dollar will buy .6250 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars? A) $72.00 B) $22.50 C) $45.94 D) $57.60