Hightown Company uses a predetermined overhead rate for applying overhead cost to products.Rates for the current year follow:
Variable Overhead Rate: $2.50 per unit
Fixed Overhead Rate: $5.00 per unit
Actual overhead costs:

The company expected to produce 125,000 units during the year,but only produced 120,000.
REQUIRED:

Question

Hightown Company uses a predetermined overhead rate for applying overhead cost to products.Rates for the current year follow:
Variable Overhead Rate: $2.50 per unit
Fixed Overhead Rate: $5.00 per unit
Actual overhead costs:
  
The company expected to produce 125,000 units during the year,but only produced 120,000.
REQUIRED:

Quizplus · Accepted Answer

The Answer of Hightown Company uses a predetermined overhead rate for applying overhead cost to products.Rates for the current year follow:
Variable Overhead Rate: $2.50 per unit
Fixed Overhead Rate: $5.00 per unit
Actual overhead costs:
  
The company expected to produce 125,000 units during the year,but only produced 120,000.
REQUIRED:

Hightown Company Uses a Predetermined Overhead Rate for Applying Overhead