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k 5 Help Save & Ch James Corp. applies overhead on the basis of direct...

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Accounting

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k 5 Help Save & Ch James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget overhead Budget Production in units Standard direct labor hours Budgeted overhead 80 8,000 22,000 Variable overhead costs Indirect labor Pover $13,200 22,000 8,800 Fixed cost Rent of factory building Depreciation-Machinery Supervisory Total fixed costs 18,000 10,300 17,900 During May, the company operated at 90% capacity (9,000 units) and incurred the following octal overhead costs 24,500

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