Longhorns Company Had the Following Information The Budgeted Factory- Overhead Rate Using Direct- Labor Hours as factory

question 30

Multiple Choice

Longhorns Company had the following information: $\begin{array}{lr}\text { Budgeted variable factory overhead }&\$66,000\\\text { Budgeted fixed factory overhead }&\$46,500\\\\\text { Actual variable factory overhead }&\$67,500\\\text { Actual fixed factory overhead }&\$52,500\\\\\text { Budgeted cost driver activity levels: }\\\text { Direct- labor hours } & 30,000 \\\text { Direct- labor costs } & \$ 150,000 \\\text { Machine hours } & 60,000 \\\text { Productionsetups } & 15,000\\\\\text { Actual cost driver activity levels: }\\\text { Direct- labor hours } & 31,500 \\\text { Direct-labor costs } & \$ 165,600 \\\text { Machine hours } & 56,190 \\\text { Productionsetups } & 14,280\end{array}$ The budgeted factory- overhead rate using direct- labor hours as the cost driver is:

• A) $3.81
• B) $4.00
• C) $3.57
• D) $3.75

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Definitions:

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