Darling Company,which Applies Overhead to Production on the Basis of Machine

question 34

Multiple Choice

Darling Company,which applies overhead to production on the basis of machine hours,reported the following data for the period just ended:
Actual units produced: 12,000
Actual fixed overhead incurred: $730,000
Actual machine hours worked: 60,000
Budgeted fixed overhead: $720,000
Planned level of machine-hour activity: 50,000
If Darling estimates four hours to manufacture a completed unit,the company's standard fixed overhead rate per machine hour would be:

• A)$12.00.
• B)$14.40.
• C)$14.60.
• D)$15.00.
• E)some other amount.

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Definitions:

Feedback Control System

A system that regulates its own operation by monitoring its output and making necessary adjustments to maintain a desired state or performance.

Work Outputs

The tangible results or products generated from the work process, which can be measured in terms of quantity, quality, or efficiency.

Feedforward Control

A management technique that involves monitoring inputs and providing proactive guidance to ensure desired outputs are achieved.

Work Process

Refers to a set of tasks or activities that are sequentially organized to accomplish a specific business goal or objective.