The Following Information Has Been Gathered for Foxmoor Industries for Its

question 37

Multiple Choice

The following information has been gathered for Foxmoor Industries for its fiscal year ending December 31:
$\begin{array}{lrr}\text { Estimated factory overhead costs } & \$ 1,500,000 \\\text { Actual factory overhead costs } & \$ 1,776,400 \\\text { Estimated labor hours } & 48,000 \\\text { Actual labor hours } & 51,700 \\\text { Estimated labor costs } & \$ 756,000 \\\text { Actual labor costs } & \$ 840,125 \\\text { Estimated machine hours } & 96,000\\\text { Actual machine hours }&102,600\end{array}$

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What is the predetermined factory overhead rate per labor hour?

• A) $29.01.
• B) $31.25.
• C) $37.01.
• D) $34.36.

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Definitions:

Ending Inventory

The aggregate worth of all products ready to be sold at the conclusion of a fiscal period.

FIFO Method

An inventory valuation method that assumes the first goods purchased or produced are the first ones sold, standing for "First In, First Out".

Cost Per Equivalent Unit

The cost per equivalent unit is calculated in process costing, representing the cost assigned to a single unit of production, considering both completed and partially completed units.

Equivalent Units

A concept used in process costing to standardize units of production, making it easier to assign costs in mixed production environments.