Monthly budgeted fixed overhead cost?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Monthly budgeted fixed overhead cost?

KrisKross Inc.'s total predetermined overhead rate is $50 per hour based on a monthly capacity of 118,800 machine hours.
Overhead is 30 percent variable and 70 percent fixed.
During September, KrisKross produced 10,200 units of product and recorded 120,000 machine hours. September's actual
overhead cost was $5,854,000. Each unit of product requires 12 machine hours.
Transcribed Image Text:KrisKross Inc.'s total predetermined overhead rate is $50 per hour based on a monthly capacity of 118,800 machine hours. Overhead is 30 percent variable and 70 percent fixed. During September, KrisKross produced 10,200 units of product and recorded 120,000 machine hours. September's actual overhead cost was $5,854,000. Each unit of product requires 12 machine hours.
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