The total factory overhead for Sterling Furnishings Inc. is budgeted at $1,200,000 for the year. Sterling manufactures two products: modern desks and classic desks. Each product requires 6 direct labor hours to manufacture. Each product is budgeted for 12,000 units of production for the year. Determine the factory overhead allocated per unit for classic desks using the single plant wide overhead rate based on direct labor hours.

The total factory overhead for Sterling Furnishings Inc. is budgeted at $1,200,000 for the year. Sterling manufactures two products: modern desks and classic desks. Each product requires 6 direct labor hours to manufacture. Each product is budgeted for 12,000 units of production for the year. Determine the factory overhead allocated per unit for classic desks using the single plant wide overhead rate based on direct labor hours.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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