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BLUE1700
BLUE1700
27.03.2020 • 
Business

World Company expects to operate at 90% of its productive capacity of 17,000 units per month. At this planned level, the company expects to use 13,770 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.900 direct labor hours per unit. At the 90% capacity level, the total budgeted cost includes $27,540 fixed overhead cost and $192,780 variable overhead cost. In the current month, the company incurred $302,020 actual overhead and 13,460 actual labor hours while producing 20,800 units. (Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.)

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