If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours are 80,000, and the actual direct labor hours are 6,700 for the month, the factory overhead rate for the month is $68.
(if the allocation is based on direct labor hours).
To calculate the factory overhead rate, divide the budgeted factory overhead cost by the budgeted direct labor hours:
Factory overhead rate = Budgeted factory overhead cost / Budgeted direct labor hours
Factory overhead rate = $460,000 / 80,000
Factory overhead rate = $5.75
Therefore, the factory overhead rate for the month is $5.75 per direct labor hour.
However, if you are given that the actual direct labor hours for the month were 6,700, you need to recalculate the factory overhead rate using the actual direct labor hours:
Factory overhead rate = Budgeted factory overhead cost / Actual direct labor hours
Factory overhead rate = $460,000 / 6,700
Factory overhead rate = $68.66
Therefore, the factory overhead rate for the month, based on the actual direct labor hours, is $68.66 per direct labor hour.
To calculate the factory overhead rate, we need to divide the total budgeted factory overhead cost by the budgeted direct labor hours.
Factory overhead rate = Budgeted factory overhead cost / Budgeted direct labor hours
Substituting the given values:
Factory overhead rate = $460,000 / 80,000
Factory overhead rate = $5.75 per direct labor hour
However, if the actual direct labor hours for the month are given, we need to calculate the actual factory overhead cost based on the actual direct labor hours.
Actual factory overhead cost = Actual direct labor hours * Factory overhead rate
Substituting the given values:
Actual factory overhead cost = 6,700 * $5.75
Actual factory overhead cost = $38,525
Therefore, the factory overhead rate for the month is not $68 as mentioned in the question.
To find the factory overhead rate for the month, we can use the formula:
Factory Overhead Rate = Budgeted Factory Overhead Cost / Budgeted Direct Labor Hours
Given that the budgeted factory overhead cost is $460,000 and the budgeted direct labor hours are 80,000, we can substitute these values into the formula:
Factory Overhead Rate = $460,000 / 80,000
Using a calculator, we can divide $460,000 by 80,000:
Factory Overhead Rate = $5.75
Therefore, the factory overhead rate for the month is $5.75.
However, in the question, it states that the factory overhead rate is $68. This implies that there might be an error in the calculation or the given information. Please double-check the values and calculation to ensure accuracy.