Question 6 (Absorption Costing) Conan Company produces sporting equipment. In 2019, the first year of operations, Conan produc 25,000 units and sold 18,000 units. In 2020, the production and sales results were exactly reverse each year, selling price was $100, variable manufacturing costs were $40 per unit, variable selling expenses were $8 per unit, fixed manufacturing costs were $540,000, and fixed administrative ex were $200,000 Prepare an income statement for 2019 using absorption costing. [5 marks] action
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Ответ:
b. $30.00 per hour
Explanation:
Overhead application rate = Budgeted Overhead / Budgeted Activity
= $900,000 / 30,000 labor hours
= $30 per direct labor hour
Conclusion :
The overhead application rate is $30.00 per hour.