Question 3 What is this an example of? Percent of capacity 90% 100% 110% Direct labor...

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Question 3 What is this an example of? Percent of capacity 90% 100% 110% Direct labor hours 1,800 2,000 2,200 Units of output 900 1,000 1,100 Variable overhead $3,600 $ 4,000 $ 4,400 Fixed overhead $6,000 $ 6,000 $ 6,000 Total overhead $9,600 $10,000 $10,400 Normal capacity 100% and overhead is applied based on direct labor hours Standard Overhead Rate = $10,000/2,000 = $5 per direct labor hour Question 3 What is this an example of? Percent of capacity 90% 100% 110% Direct labor hours 1,800 2,000 2,200 Units of output 900 1,000 1,100 Variable overhead $3,600 $ 4,000 $ 4,400 Fixed overhead $6,000 $ 6,000 $ 6,000 Total overhead $9,600 $10,000 $10,400 Normal capacity 100% and overhead is applied based on direct labor hours Standard Overhead Rate = $10,000/2,000 = $5 per direct labor hour

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