Rollerblade Corp. has budgeted fixed overhead costs of $50,000 per month plus a variable rate of $4 per direct labor hour. The total factory overhead rate is $6. Actual factory overhead in October is $115,000 and 18,000 direct labor hours were reported. Compute the total amount of budgeted overhead.

Principles of Accounting Volume 2
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Chapter4: Job Order Costing
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Rollerblade Corp. has budgeted fixed overhead
costs of $50,000 per month plus a variable rate of
$4 per direct labor hour. The total factory
overhead rate is $6. Actual factory overhead in
October is $115,000 and 18,000 direct labor
hours were reported.
Compute the total amount of budgeted overhead.
Transcribed Image Text:Rollerblade Corp. has budgeted fixed overhead costs of $50,000 per month plus a variable rate of $4 per direct labor hour. The total factory overhead rate is $6. Actual factory overhead in October is $115,000 and 18,000 direct labor hours were reported. Compute the total amount of budgeted overhead.
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