The answer for this question is False
Answer:
Fixed overhead application rate
= <u>Budgeted fixed overhead</u>
Budgeted direct labour hours
= <u>$114,000</u>
60,000 hrs
= $1.90 per direct labour hour
Amount of overhead applied to job X387: $
Variable overhead $4.90 x 170 hours = 833
Fixed overhead $1.90 x 170 hours = 323
1,156
Explanation:
In this case, there is need to calculate the fixed overhead application rate based on direct labour hours by dividing the the budgeted fixed overhead by budgeted direct labour hours. Then, we will calculate the overhead applied to Job X387 by multiplying the fixed and variable application rate by actual direct labour hours of 170 hours.
D. Demand is greater than supply
Total profit= 1200 plus 2300 plus 1800
average profit = total profit divided by 3
average accounting return= average profit divided by initial investment= 5.52 percent
thats one way
other way is to take average investment = (intial investment plus scrap value) divided by 2
