Campaign Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual ﬁxed overhead incurred: $730,000 Actual machine hours worked: 60,000 Budgeted ﬁxed overhead: $720,000 Planned level of machine-hour activity: 50,000 If Campaign estimates four hours to manufacture a completed unit, the company's standard ﬁxed overhead rate per machine hour would be:
A)$12.00.
B)$14.40.
C)$14.60.
D)$15.00.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

The Answer of Campaign Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual ﬁxed overhead incurred: $730,000 Actual machine hours worked: 60,000 Budgeted ﬁxed overhead: $720,000 Planned level of machine-hour activity: 50,000 If Campaign estimates four hours to manufacture a completed unit, the company's standard ﬁxed overhead rate per machine hour would be:
A)$12.00.
B)$14.40.
C)$14.60.
D)$15.00.
E)None of the answers is correct.

Campaign Company, Which Applies Overhead to Production on the Basis