Answer:
d. $80 per machine hours
Explanation:
The computation of the overhead rate is shown below:
Overhead rate = Estimated total overhead cost ÷ total machine hours
= $16,000,000 ÷ 200,000 hours
= $80 per machine hours
The overhead rate is come by dividing the estimated total overhead rate by the total machine hours
All the other information that is mentioned is not considered. Hence, ignored it
Answer:
The budget direct labor cost for the first quarter of the year is $57,774
Explanation:
Units per month:
January = 2,680
February = 2,600
March = 2,740
Total of units first quarter of year = 2,680+2,600+2,740= 8,020
So, "Each unit requires 0.6 hours of direct labor"
We need to multiply the units by the hours of direct labor
*why ?
Rule of three
1 unit need --------- 0.6 hours direct labor
8,020---------------- ?
= (8,020 x 0.6) / 1
= 4,812 / 1
= 4,812 hours we need to produce the total units
Finally: we need to multiply the hours by the payment per hour, or direct labor rate that is $12
4,812 x $12= $57,774 is the budget direct labor cost for the first quarter of the year.