A company allocates its variable factory overhead based on direct labor hours
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A company allocates its variable factory overhead based on direct labor hours. During the past three months, the actual direct labor hours and the total factory overhead allocated were as follows:
June July August
Direct labor hours 1,000 3,000 5,000
Total overhead allocated $80,000 $140,000 $200,000
Based upon this information, monthly fixed factory overhead was:
A) $30,000
B) $50,000
C) $46,667
D) $33,333
10 years ago
A company allocates its variable factory overhead based on direct labor hours
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