Multiple Choice Question 88 Swifty Corporation provided the

Multiple Choice Question 88 Swifty Corporation provided the following information from its accounting records for 2017: Expected production Actual production 80000 labor hours 76000 labor hours $1500000 $1440000 Actual overhead How much is the overhead application rate if Swity Corporation bases it on direct labor hours? $18.75 per hour $18.95 per hour $18.00 per hour $19.74 per hour

Solution

Swifty Corporation Expected Production based on (Direct Labor Hours) $        80,000.00 Budgeted Overhead $ 1,500,000.00 Ans (1) Overhead application rate=(Budgeted Overhead/Expected Production)=($1500000/80000) $                18.75 Per Hours