Asked by
Danica Gagnon
on Nov 17, 2024Verified
If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours are 80,000, and the actual direct labor hours are 6,700 for the month, the factory overhead rate for the month is $68.65 (if the allocation is based on direct labor hours).
Factory Overhead Rate
A measure used to estimate the total cost of manufacturing overhead per unit produced, accounting for indirect costs not directly tied to production.
Direct Labor Hours
The number of hours worked by employees that are directly involved in the manufacturing process.
- Compute the rates of factory overheads and comprehend their effects on the cost of products.
Verified Answer
NT
Learning Objectives
- Compute the rates of factory overheads and comprehend their effects on the cost of products.
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