The following information was gathered for Red Sox Company: $$\begin{array} { l r }
\text { Budgeted direct-labor hours } & 34,000 \
\text { Actual direct-labor hours } & 30,400 \
\text { Budgeted factory overhead } & \$ 144,500 \
\text { Actual factory overhead } & \$ 151,980
\end{array}$$ Assume the cost driver is direct-labor hours.The budgeted factory-overhead rate is _____.
A)$4.45
B)$4.63
C)$4.25
D)$4.84

Question

The following information was gathered for Red Sox Company: $$\begin{array} { l r } 
\text { Budgeted direct-labor hours } & 34,000 \
\text { Actual direct-labor hours } & 30,400 \
\text { Budgeted factory overhead } & \$ 144,500 \
\text { Actual factory overhead } & \$ 151,980
\end{array}$$ Assume the cost driver is direct-labor hours.The budgeted factory-overhead rate is _____.
A)$4.45
B)$4.63
C)$4.25
D)$4.84

Quizplus · Accepted Answer

The Answer of The following information was gathered for Red Sox Company: $$\begin{array} { l r } 
\text { Budgeted direct-labor hours } & 34,000 \
\text { Actual direct-labor hours } & 30,400 \
\text { Budgeted factory overhead } & \$ 144,500 \
\text { Actual factory overhead } & \$ 151,980
\end{array}$$ Assume the cost driver is direct-labor hours.The budgeted factory-overhead rate is _____.
A)$4.45
B)$4.63
C)$4.25
D)$4.84

The Following Information Was Gathered for Red Sox Company Assume the Cost Driver Is Direct-Labor Hours