The flexible budget of Coco Corp. In different levels of direct labor hours.                                                Direct labor hours       20,000 30,000 40,000         Variable FOH     40, 000 60,000 80,000         Fixed FOH     10,000 10,000 10,000         Each product needs 5 direct labor hours, and the company expects to produce 2,000 units in 2021. Calculate the total factory overhead rate per unit using direct labor hours as allocation base.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 15EB: Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per...
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  1. The flexible budget of Coco Corp. In different levels of direct labor hours.

 

                                             Direct labor hours

 

 

 

20,000

30,000

40,000

 

 

 

 

Variable FOH

 

 

40, 000

60,000

80,000

 

 

 

 

Fixed FOH

 

 

10,000

10,000

10,000

 

 

 

 

Each product needs 5 direct labor hours, and the company expects to produce 2,000 units in 2021.

Calculate the total factory overhead rate per unit using direct labor hours as allocation base.

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