If Bundle of Goods A contains two pizzas and three sodas, and Bundle B contains three pizzas and three sodas, then Patrick will
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Answer:
Manufacturing overheads allocated based on hourly rate = $140,000
Explanation:
As for the information provided, the following is available,
Standard or budgeted manufacturing overhead = $175,000 based on working of 25,000 labor hours.
That means budgeted rate for the activity = $175,000/25,000 = $7 per hour.
Provided actual overheads = $182,000 for 20,000 hours.
Had the overheads been charged based on standard basis of hourly rate, overheads would be = 20,000 $7 = $140,000
As with this it means actual overheads are over absorbed, by $182,000 - $140,000 = $42,000