SCG makes wall units. For the year, the following details have been budgeted. Output, 10,000 units; factory overheads $1.250,000, of which 60% is variable. Each wall unit should take 25 hours of direct labor to produce. SCG produced 9,500 units with 24,000 DLH used and $1.175,000 actual overhead was incurred. Overhead is allocated based on direct labor hours (DLH). What is SCG's total overhead absorbed? $1,200,000 $1,187,500 $1,175,000 S1,250,000

SCG makes wall units. For the year, the following details have been budgeted. Output, 10,000 units; factory overheads $1.250,000, of which 60% is variable. Each wall unit should take 25 hours of direct labor to produce. SCG produced 9,500 units with 24,000 DLH used and $1.175,000 actual overhead was incurred. Overhead is allocated based on direct labor hours (DLH). What is SCG's total overhead absorbed? $1,200,000 $1,187,500 $1,175,000 S1,250,000

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.7IP

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