Darling company which applies overhead to production on the

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Reference no: EM13582580

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 variable overhead incurred: $730,000

Actual machine hours worked: 60,000

Budgeted fixed overhead $72,000

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:

Reference no: EM13582580

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