The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs:   Actual total factory overhead cost incurred $ 31,000 Actual fixed overhead cost incurred $ 12,000 Budgeted fixed overhead cost $ 14,000 Actual machine hours 4,000 Standard machine hours allowed for the units manufactured 5,200 Denominator volume—machine hours 4,500 Standard variable overhead rate per machine hour $ 3    The total actual variable factory overhead cost incurred during the year was:   Multiple Choice   $19,000.   $20,000.   $18,000.   $19,400.   $19,100.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs:

 

Actual total factory overhead cost incurred $ 31,000
Actual fixed overhead cost incurred $ 12,000
Budgeted fixed overhead cost $ 14,000
Actual machine hours 4,000
Standard machine hours allowed for the units manufactured 5,200
Denominator volume—machine hours 4,500
Standard variable overhead rate per machine hour $ 3

 

 The total actual variable factory overhead cost incurred during the year was:

 

Multiple Choice
  •  
    $19,000.
  •  
    $20,000.
  •  
    $18,000.
  •  
    $19,400.
  •  
    $19,100.
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