Absolute systems allocate manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static budget absolute expected to incur the following: 1. 480 machine hours per month (connectors * 8 machine hours per connector). 2. $6,000 in variable manufacturing overhead costs. 3. $9,560 in fixed manufacturing overhead costs. During August absolute actually used 400 machine hours to make 125 connectors and spent $5,500 and variable manufacturing costs and $9,600 and fixed manufacturing overhead costs absolute standard variable manufacturing overhead allocation rate is: A. $15 per machine hour B. $12.50 per machine hour C. $32.42 per machine hour D. $19.92 per machine hour

Absolute systems allocate manufacturing overhead based on machine hours. Each connector should require 8 machine hours. According to the static budget absolute expected to incur the following: 1. 480 machine hours per month (connectors * 8 machine hours per connector). 2. $6,000 in variable manufacturing overhead costs. 3. $9,560 in fixed manufacturing overhead costs. During August absolute actually used 400 machine hours to make 125 connectors and spent $5,500 and variable manufacturing costs and $9,600 and fixed manufacturing overhead costs absolute standard variable manufacturing overhead allocation rate is: A. $15 per machine hour B. $12.50 per machine hour C. $32.42 per machine hour D. $19.92 per machine hour

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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