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Question 117

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[The following information applies to the questions displayed below.]
The monthly high and low levels of direct labor hours and of total manufacturing overhead for Onyx Company are as shown:
[The following information applies to the questions displayed below.] The monthly high and low levels of direct labor hours and of total manufacturing overhead for Onyx Company are as shown:    -On the basis of the above data,the cost formula for Onyx's monthly manufacturing overhead can be expressed as: A) $18.00 average cost per direct labor hour. B) $1.80 average cost per direct labor hour. C) $26,000 fixed cost plus $1.50 per direct labor hour. D) $18,000 fixed cost plus $2.00 per direct labor hour.
-On the basis of the above data,the cost formula for Onyx's monthly manufacturing overhead can be expressed as:


A) $18.00 average cost per direct labor hour.
B) $1.80 average cost per direct labor hour.
C) $26,000 fixed cost plus $1.50 per direct labor hour.
D) $18,000 fixed cost plus $2.00 per direct labor hour.

Correct Answer:

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