Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.How much is variable overhead on the flexible budget?
A)$56,400
B)$97,790
C)$103,400
D)$116,700

Question

Quizplus · Accepted Answer

Variable overhead on the flexible budget is $97,790. This is calculated by multiplying the variable overhead standard of 2 hours per unit by the actual labor hours used of 8,890 hours, and then multiplying the result by the variable overhead rate of $11 per hour.

Raven Applies Overhead Based on Direct Labor Hours