QUESTION 7 Davidson Inc. uses a standard costing system. The following monthly cost functions apply to its manufacturing overhead items: Overhead Item Cost Function Indirect materials $2.30 per DLH Indirect labor $3.90 per DLH Utilities $1.90 per DLH Insurance $72,000 Depreciation $288,000 Information for the month of December is as follows: Actual overhead costs incurred: Indirect materials Indirect labor Utilities Insurance Depreciation Total Actual direct labor hours worked Standard direct labor hours allowed for production achieved $187,2 00 216,00 0 86,400 79,200 288,00 0 $856,8 00 72,000 81,000 Carlson uses expected capacity to calculate standard overhead rates. The monthly expected capacity is 75,000 hours. What is the variable overhead rate. ENTER YOUR ANSWER TO 2 DECIMAL PLACES. DO NOT ENTER THE $ SIGN

QUESTION 7 Dovidson Inc. uses a standard costing system. The following monthly cost functions apply to its manufacturing overheat Information for the month of December is as follows: Carlson uses expected capaciy to calculate standard overhead rates. The monthly expected capacity is 75,000 hours: What is the variable overtead rate. ENIER YOUR ANSWER TO 2 DECIMAL PLACES, DO NOT ENTER THE S SIGN