Use This Information for Swan Company to Answer the Questions

question 24

Multiple Choice

Use this information for Swan Company to answer the questions that follow.

Swan Company produces a product at a total cost of $43 per unit. Of this amount, $8 per unit is selling and administrative costs. The total variable cost is $30 per unit, and the desired profit is $20 per unit.
-What is the activity rate for general overhead?

• A) $4.00 per direct labor hour
• B) $60.00 per direct labor hour
• C) $6.67 per direct labor hour
• D) $10.00 per direct labor hour