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MaRussiya [10]
3 years ago
11

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The stan

dard allows 1 direct labor hour per unit. During the current year, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is the standard activity level on which Croissant based its fixed overhead rate?
Business
1 answer:
slamgirl [31]3 years ago
3 0

Answer:

Standard activity level= 100,000 units

Explanation:

Giving the following information:

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit.

Standard activity level= 600,000/6= 100,000 units

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I guess the correct answer is Labor

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