When calculating the predetermined manufacturing overhead rates using direct labour hours as the cost driver the formula is 'total overhead divided by total direct labour hours'. This rate is applied to both the variable overhead and the fixed overhead.
Correct Answer:
Verified
Q97: A three-way overhead variance analysis refers to
A)
Q98: Which of the following are service organisations
Q99: Management uses flexible budgets for controlling manufacturing
Q100: Management response to volume variance
The SanBo Plant
Q101: One of the main criticisms of standard
Q103: ABB works in the reverse way to
Q104: A correct interpretation of an unfavourable variance
Q105: Although it is assumed that fixed overheads
Q106: Flexible budgets only reflect changes in the
Q107: Flexible overhead budgets are based on standard
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