Ortiz Appliances manufacturing overhead budget shows total variable costs of 198,000 and total fixed costs of 162,000.

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Ortiz Appliances’ manufacturing overhead budget shows total variable costs of €198,000 and total fixed costs of €162,000. Total production in units is expected to be 150,000. It takes 20 minutes to make one unit, and the direct labor rate is €15 per hour. Express the manufacturing overhead rate as 

(a) A percentage of direct labor cost, and 

(b) An amount per direct labor hour.

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Related Book For  answer-question

Accounting Principles

ISBN: 978-1119419617

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

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