CMA 1294 3.28
- This topic has 2 replies, 2 voices, and was last updated 2 months, 3 weeks ago by Anatoly Dolinin.
In this question is like 2 standard VOH rates/hour: first 8$ (bold text below) and than 9$ (in information of November). What is the difference? Why I can’t use 9$ in calculations?
Water Control Inc. manufactures water pumps and uses a standard cost system. The standard factory overhead costs per water pump are based on direct labor hours and are as follows:
Variable overhead (4 hours at $8/hour) – $32
The following additional information is available for the month of November:
The standard direct labor rate is $9 per hour.
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