Crawford Company's Standard Fixed Overhead Cost Is $6 Per Direct

question 43

Multiple Choice

Crawford Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000.The standard allows 1 direct labor hour per unit.During 2006, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.
- What is the standard activity level on which Crawford based its fixed overhead rate?

• A) 110,000 direct labor hours
• B) 105,000 direct labor hours
• C) 100,000 direct labor hours
• D) 50,000 direct labor hours

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