Determining Overhead Costs: Trepid Manufacturing Company
Trepid Manufacturing Company prepared a fixed budget of 40,000 direct labor hours, with estimated overhead costs of $200,000 for variable overhead and $60,000 for fixed overhead. Trepid then prepared a flexible budget at 38,000 labor hours. How much is total overhead costs at this level of activity?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/business-math/determining-overhead-costs-trepid-manufacturing-company-7evk
$200,000 / 40,000 = $5 / hour
The fixed overhead does not change.
For the new ...