Alpine Manufacturing's normal capacity is 25,000 direct labor hours. If Alpine's variable costs are $32,500 and its fixed costs are $17,500 when the company runs at normal capacity, what is its standard manufacturing overhead rate per unit? A. $1.30 B. $2.00 C. $0.70 D. $1.85

Alpine Manufacturing's normal capacity is 25,000 direct labor hours. If Alpine's variable costs are $32,500 and its fixed costs are $17,500 when the company runs at normal capacity, what is its standard manufacturing overhead rate per unit? A. $1.30 B. $2.00 C. $0.70 D. $1.85

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...

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Question

What is it's standard manufacturing overhead rate per unit for this general accounting question?

Alpine Manufacturing's normal capacity is 25,000
direct labor hours. If Alpine's variable costs are
$32,500 and its fixed costs are $17,500 when the
company runs at normal capacity, what is its
standard manufacturing overhead rate per unit?
A. $1.30
B. $2.00
C. $0.70
D. $1.85

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