The following data is given for Simpson Company:
Actual variable overhead costs - $460,000
Budgeted variable overhead costs - $515,000
Actual fixed overhead costs - $520,000
Budgeted fixed overhead costs - 530,000
Actual machine hours -112,000 hours
Budgeted machine hours - 111,000 hours
What is the standard overhead allocation rate for fixed overhead using machine hours for the allocation base?
A. 4.73 per machine hour
B. 4.60 per machine hour
C. 4.64 per machine hour
D. 4.77 per machine hour

Question

15-06-2024
Business

Answered

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The following data is given for Simpson Company:
Actual variable overhead costs - $460,000
Budgeted variable overhead costs - $515,000
Actual fixed overhead costs - $520,000
Budgeted fixed overhead costs - 530,000
Actual machine hours -112,000 hours
Budgeted machine hours - 111,000 hours
What is the standard overhead allocation rate for fixed overhead using machine hours for the allocation base?
A. 4.73 per machine hour
B. 4.60 per machine hour
C. 4.64 per machine hour
D. 4.77 per machine hour

Sagot :

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