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SCG makes wall units. For the year, the following details have been budgeted. Output, 10,000 units;...

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Accounting

SCG makes wall units. For the year, the following details havebeen budgeted. Output, 10,000 units; factory overheads $1,250,000,of which 60% is variable. Each wall unit should take 2.5 hours ofdirect labor to produce. SCG produced 9,500 units with 24,000 DLHused and $1,175,000 actual overhead was incurred. Overhead isallocated based on direct labor hours (DLH). What is SCG's totaloverhead absorbed? $1,200,000 $1,187,500 $1,175,000 $1,250,000

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4.2 Ratings (888 Votes)
Budgeted details Total overhead 1250000 Variable overhead 1250000 60 750000 Fixed overhead 1250000 100 60 1250000 40 500000 Labor hours    See Answer
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