National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming...

Transcribed Image Text:

National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year. Because it is a labor-intensive organization, National Pottery bases overhead allocation on direct labor cost. The direct labor quantity standard is 2.7 hours per pot, and the standard direct labor rate is $22.50 per hour. The anticipated direct labor cost for the year is $3,375,000. Variable overhead is expected to be $2,162,350. What is the standard fixed overhead cost per pot? Round your answer to the nearest cent. $23.11 $18.45 O $6.83 O $38.92 National Pottery makes handmade clay pots. The company anticipates $3,187,219 of manufacturing overhead in the coming year. Because it is a labor-intensive organization, National Pottery bases overhead allocation on direct labor cost. The direct labor quantity standard is 2.7 hours per pot, and the standard direct labor rate is $22.50 per hour. The anticipated direct labor cost for the year is $3,375,000. Variable overhead is expected to be $2,162,350. What is the standard fixed overhead cost per pot? Round your answer to the nearest cent. $23.11 $18.45 O $6.83 O $38.92

Answer rating: 100% (QA)

Standard fixed ... View the full answer