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University Of Central Oklahoma Operations And Supply Chain Management Assignment Help - Morton Company’s


Question - Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour
and fixed manufacturing should be $270,000 per year.
The company manufactures a single product that requires two direct labor-hours to complete. The
direct labor wage rate is $15 per hour. Four feet of raw material are required for each unit of product;
the standard cost of the material is $8.75 per foot.
Although normal activity is 30,000 direct labor-hours each year, the company expects to operate at a
40,000-hour level of activity this year.
Required:
1. Assume that the company chooses 30,000 direct labor-hours as the denominator level of activity.
Compute the predetermined overhead rate, breaking it down into variable and fixe ...Read More

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