A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs)as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below:
$$\begin{array} { | l | r | l | }
\hline \text { Level of activity' } & 2,500 & \mathrm { DLHs } \
\hline \text { Overhead costs at the denominator } & & \
\text { activity lev' el: } & & \
\hline \text { Variable overhead cost } & \$ 8,500 & \
\hline \text { Fred overhead cost } & \$ 34,625 & \
\hline
\end{array}$$
The following data pertain to operations for the most recent period:
How much overhead was applied to products during the period to the nearest dollar?
A) $44,712.
B) $44,125.
C) $43,125.
D) $44,850.

Question

A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs)as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: 
$$\begin{array} { | l | r | l | } 
\hline \text { Level of activity' } & 2,500 & \mathrm { DLHs } \
\hline \text { Overhead costs at the denominator } & & \
\text { activity lev' el: } & & \
\hline \text { Variable overhead cost } & \$ 8,500 & \
\hline \text { Fred overhead cost } & \$ 34,625 & \
\hline
\end{array}$$ 
The following data pertain to operations for the most recent period:
How much overhead was applied to products during the period to the nearest dollar?
A) $44,712. 
B) $44,125. 
C) $43,125. 
D) $44,850.

Quizplus · Accepted Answer

The Answer of A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs)as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: 
$$\begin{array} { | l | r | l | } 
\hline \text { Level of activity' } & 2,500 & \mathrm { DLHs } \
\hline \text { Overhead costs at the denominator } & & \
\text { activity lev' el: } & & \
\hline \text { Variable overhead cost } & \$ 8,500 & \
\hline \text { Fred overhead cost } & \$ 34,625 & \
\hline
\end{array}$$ 
The following data pertain to operations for the most recent period:
How much overhead was applied to products during the period to the nearest dollar?
A) $44,712. 
B) $44,125. 
C) $43,125. 
D) $44,850.

A Manufacturer of Industrial Equipment Has a Standard Costing System