8. The Normal Capacity of the Assembly Department is 12000 Machine Hours per month, At normal capacity, the standard F.O.H rate is $12.5per machine hour, based on $96000 of budgeted fixed expenses per month. During April ,the department operated at 12500 machine hours, with actual F.O.H of $156000. The number of standard machine hours allowed for the production actually attained hatey is 11000.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...
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8. The Normal Capacity of the Assembly Department is
12000 Machine Hours per month, At normal capacity, the
standard F.O.H rate is $12.5per machine hour, based on
$96000 of budgeted fixed expenses per month. During
April ,the department operated at 12500 machine hours .
with actual F.O.H of $156000. The number of standard
machine hours allowed for the production actually attained
is 11000.
Transcribed Image Text:8. The Normal Capacity of the Assembly Department is 12000 Machine Hours per month, At normal capacity, the standard F.O.H rate is $12.5per machine hour, based on $96000 of budgeted fixed expenses per month. During April ,the department operated at 12500 machine hours . with actual F.O.H of $156000. The number of standard machine hours allowed for the production actually attained is 11000.
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