At the end of the month, actual manufacturing overhead costs were $84,000, and applied manufacturing overhead costs were $78,750. If the denominator activity for the month was 15,000 direct labor hours, and if 15,750 standard direct labor hours were allowed for the month's production, calculate the predetermined overhead rate per direct labor hour.

At the end of the month, actual manufacturing overhead costs were $84,000, and applied manufacturing overhead costs were $78,750. If the denominator activity for the month was 15,000 direct labor hours, and if 15,750 standard direct labor hours were allowed for the month's production, calculate the predetermined overhead rate per direct labor hour.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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