The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs$46,200 Fixed manufacturing overhead costs$27,720 Normal production level in labor hours23,100 Normal production level in units5,775 Standard labor hours per unit4During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's total overhead rate isGroup of answer choices$1.20.$2.00.$3.27.$3.20.

Name: The following information was taken from the annual manufacturing over
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Description: The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs$46,200 Fixed manufacturing overhead costs$27,720 Normal production level in labor hours23,100 Normal

Total overhead rate =( variable manufacturing overhead + fixed manufacturing overhead)/labor…

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Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...

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The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.

	Variable manufacturing overhead costs	$46,200
	Fixed manufacturing overhead costs	$27,720
	Normal production level in labor hours	23,100
	Normal production level in units	5,775
	Standard labor hours per unit	4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's total overhead rate is

Group of answer choices

$1.20.

$2.00.

$3.27.

$3.20.

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