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How much overhead would be applied to production

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Reference no: EM132770124

Wiki Wiki Company has determined that the variable overhead rate is $4.1 per direct labor hour in the Fabrication Department. The normal production capacity for the Fabrication Department is 9,000 hours for the month. Fixed costs are budgeted at $51,300 for the month.

Problem a. Make ready a monthly factory overhead flexible budget for 8,100, 9,000, and 9,900 hours of production.

Problem b. How much overhead would be applied to production if 9,900 hours were used in the department during the month?

Reference no: EM132770124

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