National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year. Because it is a labor-intensive organization, National Pottery bases overhead allocation on direct labor cost. The direct labor quantity standard is 2.7 hours per pot, and the standard direct labor rate is $22.50 per hour. The anticipated direct labor cost for the year is $3,375,000. Variable overhead is expected to be $2,162,350. What is the standard fixed overhead cost per pot? Round your answer to the nearest cent.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year.
Because it is a labor-intensive organization, National Pottery bases overhead allocation on direct labor cost. The direct labor quantity
standard is 2.7 hours per pot, and the standard direct labor rate is $22.50 per hour. The anticipated direct labor cost for the year is
$3,375,000. Variable overhead is expected to be $2,162,350. What is the standard fixed overhead cost per pot? Round your answer to
the nearest cent.
O $23.11
O $6.83
O $38.92
O $18.45
Transcribed Image Text:National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year. Because it is a labor-intensive organization, National Pottery bases overhead allocation on direct labor cost. The direct labor quantity standard is 2.7 hours per pot, and the standard direct labor rate is $22.50 per hour. The anticipated direct labor cost for the year is $3,375,000. Variable overhead is expected to be $2,162,350. What is the standard fixed overhead cost per pot? Round your answer to the nearest cent. O $23.11 O $6.83 O $38.92 O $18.45
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