Actual Fixed Overhead Is $33,300 (12,000 Machine Hours)and Fixed Overhead

question 155

Multiple Choice

Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the predetermined rate of $3.00 per machine hour was set.If 11,500 standard hours were allowed for actual production,applied fixed overhead is

• A)$33,300.
• B)$34,000.
• C)$34,500.
• D)not determinable without knowing the actual number of units produced.

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Definitions:

Labor-hours

The total number of hours worked by all employees during a specific period, used as a measure in various calculations and operational decisions.

Custodial Care

Non-medical care and assistance with daily activities, provided primarily for support rather than therapeutic purposes.

Rehabilitation

The process of restoring a facility, equipment, or system to its previous operational condition or improving it to meet current standards.

Margin

The difference between the selling price of a product and the cost of producing it, often expressed as a percentage of the selling price.