QUESTION 6 Dew Drop Inn, Inc., has direct labor costs of $11 per hour, direct materials are $1 per room and overhead is allocated to rooms at a rate of $31 per labor hour. Calculate the total cost per room given it takes 1/2 hour per room, and Dew Drop Inn rented 300 rooms during the month.

QUESTION 6 Dew Drop Inn, Inc., has direct labor costs of $11 per hour, direct materials are $1 per room and overhead is allocated to rooms at a rate of $31 per labor hour. Calculate the total cost per room given it takes 1/2 hour per room, and Dew Drop Inn rented 300 rooms during the month.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 12E

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QUESTION 6
Dew Drop Inn, Inc., has direct labor costs of $11 per hour, direct materials are $1 per room and overhead is allocated to rooms at a rate of $31 per labor hour. Calculate the total cost per room given it takes
1/2 hour per room, and Dew Drop Inn rented 300 rooms during the month.

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