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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:

-The standard cost for facility sustaining manufacturing overhead is $536,000 if the company produces 78,000 units of product.Actual facility sustaining manufacturing overhead to produce 79,500 units of product was $531,500.What is the standard cost of sustaining manufacturing overhead at the actual level of production?
A)$521,472
B)$531,500
C)$536,000
D)$546,308

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Use the following to answer questions 
Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-The standard cost for facility sustaining manufacturing overhead is $536,000 if the company produces 78,000 units of product.Actual facility sustaining manufacturing overhead to produce 79,500 units of product was $531,500.What is the standard cost of sustaining manufacturing overhead at the actual level of production?
A)$521,472 
B)$531,500 
C)$536,000 
D)$546,308

Quizplus · Accepted Answer

The standard cost of sustaining manufacturing overhead at the actual level of production can be calculated by first determining the standard cost per unit, which is $536,000 / 78,000 units = $6.87 per unit. Then, multiplying this rate by the actual production level gives $6.87 * 79,500 units = $546,307.50, which rounds to $546,308.

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