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Ierofanga [76]
3 years ago
8

Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted fixed costs of $600,000. The st

andard allows 1 direct labor hours per unit. During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
Required:
What is the activity level on which Crawford based its fixed overhead rate?
Business
1 answer:
natka813 [3]3 years ago
4 0

Answer:

The answer is "\$ \ 100,000 \ hours"

Explanation:

Budgeted fixed cost  = \$ 600,000  

labour hours = \frac{ \$ 6 }{hour}  

\text{overhead rate} = \frac{ \text{Budgeted fixed cost}}{labour\ hours}

                     = \frac{\$ \ 600, 000}{\$ \ 6}\\\\= \$ \ 100,000 \ hours

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