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artcher [175]
4 years ago
9

Silver Mfg. provided the following information from its accounting records for 2008: Expected production 20,000 labor hours Actu

al production 18,800 labor hours Budgeted overhead $400,000 Actual overhead $384,000 How much is the overhead application rate if Silver bases the rate on direct labor hours? Select one: a. $20.43 per hour b. $20.00 per hour c. $19.20 per hour d. $21.28 per hour
Business
1 answer:
Lemur [1.5K]4 years ago
3 0

Answer:

Option (b) is correct.

Explanation:

Expected production = 20,000 labor hours

Actual production = 18,800 labor hours

Budgeted overhead = $400,000

Actual overhead = $384,000

overhead\ application\ rate\ per\ direct\ labor=\frac{Estimated\ factory\ overhead\ cost}{Estimated\ direct\ labor\ hours}

overhead\ application\ rate\ per\ direct\ labor=\frac{400,000}{20,000}

= $20 per hour

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3 0
2 years ago
Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory record
frez [133]

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