Audrina's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping department costs for 2017. Pairs of shoes shipped Average number of pairs of shoes per crate Packing hours per crate Variable direct cost per hour Fixed overhead cost Static-Budget Amounts 225,000 15 0.9 hours Actual Results 180,000 10 1.1 hour $18 $16 $54,000 $56,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?

Audrina's Fleet Feet, Inc., produces dance
shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and
shipped in batches. The shipping department records both variable direct batch-level costs and fixed
batch-level overhead costs. The following information pertains to shipping department costs for 2017.
Pairs of shoes shipped
Average number of pairs of shoes per crate
Packing hours per crate
Variable direct cost per hour
Fixed overhead cost
Static-Budget Amounts
225,000
15
0.9 hours
Actual Results
180,000
10
1.1 hour
$18
$16
$54,000
$56,500
Transcribed Image Text:Audrina's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping department costs for 2017. Pairs of shoes shipped Average number of pairs of shoes per crate Packing hours per crate Variable direct cost per hour Fixed overhead cost Static-Budget Amounts 225,000 15 0.9 hours Actual Results 180,000 10 1.1 hour $18 $16 $54,000 $56,500
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