Question

Marigold Corp. provided the following information from its accounting records for 2019. Expected production 100000 labor...

Marigold Corp. provided the following information from its accounting records for 2019.

Expected production 100000 labor hours
Actual production 96000 labor hours
Budgeted overhead $700000
Actual overhead $670000


How much is the overhead application rate if Marigold Corp. bases the rate on direct labor hours?

$6.98 per hour

$6.70 per hour

$7.29 per hour

$7.00 per hour

2 0
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Answer #1

Overhead application rate $7.00 per hour Working Notes: Overhead application rate = Budgeted Overhead / Expected production l

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