Foster Company, a labor-intensive manufacturer, compiled the following data for the current period:
Assuming that Foster Company uses direct labor hours as a cost driver, determine the budgeted manufacturing overhead rate for the current period?

Question

Foster Company, a labor-intensive manufacturer, compiled the following data for the current period:
 Assuming that Foster Company uses direct labor hours as a cost driver, determine the budgeted manufacturing overhead rate for the current period?

Quizplus · Accepted Answer

$600,000 budgeted MOH/200,000 budgeted DLH = $3/direct labor hour

Foster Company, a Labor-Intensive Manufacturer, Compiled the Following Data for the Current