Litchfield Industries Gathered the Following Information for the Month Ended

question 26

Multiple Choice

Litchfield Industries gathered the following information for the month ended June 31:
The static budget volume is 5,500 units:
Overhead flexible budget:

Actual production was 12,000 units.Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs.Actual machine hours worked were 16,000 hours.
What is the standard variable overhead rate per machine hour?

• A)$3.50
• B)$4.31
• C)$2.47
• D)$3.86

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