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What the budgeted overhead recovery rate for january

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Question - Southron Inc. makes electrical appliances such as toasters, irons and dustbusters. The flexible (variable) cost per unit is $15. Fixed cost is $483652 per month. The appliances are sold to retailers for $25 each, on average. Fixed costs are allocated to products on the basis of direct labour hours, and the budget for January is that 10,000 direct labour hours will be worked. What the budgeted overhead recovery rate for January?

a. None of the other alternatives is correct

b. $25.00

c. $48.37 per direct labout hour

d. $63.37 per direct labout hour

e. $15.00

Reference no: EM133144206

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