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Homework answers / question archive / USC Company has the following information available:   Budgeted factory overhead costs         $90,000 Actual factory overhead costs              $80,000 Budgeted direct labor hours                  20,000 Actual direct labor hours                       21,000   Assume direct labor hours are the cost driver of factory overhead costs

USC Company has the following information available:   Budgeted factory overhead costs         $90,000 Actual factory overhead costs              $80,000 Budgeted direct labor hours                  20,000 Actual direct labor hours                       21,000   Assume direct labor hours are the cost driver of factory overhead costs

Accounting

USC Company has the following information available:

 

Budgeted factory overhead costs         $90,000

Actual factory overhead costs              $80,000

Budgeted direct labor hours                  20,000

Actual direct labor hours                       21,000

 

Assume direct labor hours are the cost driver of factory overhead costs. The budgeted factory overhead rate is ________.

Group of answer choices

 

 

$3.57 per direct labor hour

 

$3.81 per direct labor hour

 

$4.00 per direct labor hour

 

$4.50 per direct labor hour

 

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Formula;

 Budgeted FOH rate = Budgeted factory overhead cost / budgeted direct labor hours

 

Put the values in the formula;

= 90,000 / 20,000

= 4.50

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