Atlas Manufacturing's normal capacity is 15,000 direct labor hours. The company's variable costs are $21,000 and fixed costs are $12,000 when operating at normal capacity. What is Atlas's standard manufacturing overhead rate per unit? A. $1.40 B. $2.20 C. $0.80 D. $3.30

Atlas Manufacturing's normal capacity is 15,000 direct labor hours. The company's variable costs are $21,000 and fixed costs are $12,000 when operating at normal capacity. What is Atlas's standard manufacturing overhead rate per unit? A. $1.40 B. $2.20 C. $0.80 D. $3.30

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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Question

Atlas manufacturing normal capacity solve this accounting questions

Atlas Manufacturing's normal capacity is 15,000 direct
labor hours. The company's variable costs are $21,000 and
fixed costs are $12,000 when operating at normal capacity.
What is Atlas's standard manufacturing overhead rate per
unit?
A. $1.40
B. $2.20
C. $0.80
D. $3.30

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