The following standard costs were developed for one of Commodore Company's products: The following information is available regarding the company's operations for the period: Budgeted fixed overhead for the period is £280,000, and expected capacity for the period is 28,000 direct labour hours.
Required:
a.
Calculate the standard fixed overhead rate.
b.
Complete the standard cost card for the product.

Question

The following standard costs were developed for one of Commodore Company's products:  The following information is available regarding the company's operations for the period:  Budgeted fixed overhead for the period is £280,000, and expected capacity for the period is 28,000 direct labour hours.
Required: 
a.
Calculate the standard fixed overhead rate.
b.
Complete the standard cost card for the product.

Quizplus · Accepted Answer

The Answer of The following standard costs were developed for one of Commodore Company's products:  The following information is available regarding the company's operations for the period:  Budgeted fixed overhead for the period is £280,000, and expected capacity for the period is 28,000 direct labour hours.
Required: 
a.
Calculate the standard fixed overhead rate.
b.
Complete the standard cost card for the product.

The Following Standard Costs Were Developed for One of Commodore