Business, 22.12.2021 09:40 liyah450

Carlson Inc. uses a standard costing system. The following monthly cost functions apply to its manufacturing overhead items: Overhead Item Cost Function Indirect materials $2.40 per DLH Indirect labor $3.00 per DLH Utilities $1.20 per DLH Insurance $72,000 Depreciation $288,000 Information for the month of December is as follows: Actual overhead costs incurred: Indirect materials $187,200 Indirect labor 216,000 Utilities 86,400 Insurance 79,200 Depreciation 288,000 Total $856,800 Actual direct labor hours worked 72,000 Standard direct labor hours allowed for production achieved 81,000 Carlson uses expected capacity to calculate standard overhead rates. The monthly expected capacity is 75,000 hours. Calculate the variable overhead rate. a. $4.80 per DLH b. $11.40 per DLH c. $5.40 per DLH d. $6.60 per DLH e. None of these choices are correct.

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Carlson Inc. uses a standard costing system. The following monthly cost functions apply to its manuf...

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