Reference no: EM131783539

Question - Darling Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:

Actual units produced: 12,000

Actual fixed overhead incurred: $730,000

Actual machine hours worked: 60,000

Budgeted fixed overhead: $720,000

Planned level of machine-hour activity: 50,000

If Darling estimates four hours to manufacture a completed unit, the company's standard fixed overhead rate per machine hour would be:

$12.00.

$14.40.

$14.60.

$15.00.