Regal Creations designs and builds custom watches. During October, it had applied an overhead of $135,000. Overhead is applied at the rate of 75% of direct labor cost. Direct labor wages average $28 per hour. How many direct labor hours did Regal Creations have for the month of October?

Regal Creations designs and builds custom watches. During October, it had applied an overhead of $135,000. Overhead is applied at the rate of 75% of direct labor cost. Direct labor wages average $28 per hour. How many direct labor hours did Regal Creations have for the month of October?

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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