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Problem T4-11 Water Movers, Inc. is known throughout the world for its H2O-X high-capacity water pump, used in irrigation systems. The company uses a standard costing system, and the pumps standard cost is as follows. The companys predetermined fixed overhead rate is based on an expected capacity of 100,000 direct labor hours per month.

Problem T1-11 Your answer is partially correct. Try again. Water Movers, Inc. is known throughout the world tor its H20O-X high-capacity water pump, used in irrigation systems. The company uses a standard costing system, and the pump's standard cost is as follows. The company's predetermined fixed overhead rate is based on an expected capacity of 100,000 direct labor hours per month. Standard Standard Standard Cost $90 36 32 20 178 Frice uantityC Direct materials $6 per pound 5 ponds Direct labor Variable overhead Fixed overhead $9 per DLH $8 per DLH $5 per DLH 4 DLH 4 DLH 4DLH During the month of September, the company produced 22,000 of the 25,000 pumps that had been scheduled for production in the budget. The company used 382,000 pounds of material during September. The direct labor payroll for the month was $940,000 for 94,000 direct labor hours. Variable overhead costs were $740,000; fixed overhead costs were $540,000 The company's purchasing agent signed a new supply contract that resulted in purchases of 500,000 pounds of direct materials at a price of S2,750,000 on account

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