Multiple Choice
Everett Ltd budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labor hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labor hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavorable, and the actual variable overhead rate was $2.10 per direct labor hour. The standard fixed overhead rate per direct labor hour was
A) $0.48
B) $0.90
C) $0.50
D) $0.96
Correct Answer:
Verified
Correct Answer:
Verified
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