Reference no: EM132537512
The following cost data pertains to GHI Inc. for December 31st, 2019:
Beginning Work-in-Process:$10,000
Ending Work-in-Process:$ 5,000
Direct Materials Used:$20,000
Direct Costs Incurred in Production:$30,000
Actual Indirect costs incurred in Production:$38,000
($20,000 of which is fixed)
Beginning Finished Goods Inventories:$40,000
Ending Finished Goods Inventories:$20,000
Question 1: Budgeted Fixed Factory Overhead was $25,000 based on an expected activity level of 5,000 hours. During the period, GHI employees worked a total of 8,000 direct labour hours. GHI uses a job-order costing system and applies overhead costs using direct labour hours. What was GHI's actual fixed overhead rate?