At the end of the quarter, actual manufacturing overhead costs were $95,000, and applied manufacturing overhead costs were $88,200. If the denominator activity for the quarter was 14,000 labor hours, and if 14,700 standard labor hours were allowed for the quarter's production, calculate the predetermined overhead rate per labor hour.

At the end of the quarter, actual manufacturing overhead costs were $95,000, and applied manufacturing overhead costs were $88,200. If the denominator activity for the quarter was 14,000 labor hours, and if 14,700 standard labor hours were allowed for the quarter's production, calculate the predetermined overhead rate per 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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