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: 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:  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

Overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Standard hours allowed for the actual output
= $17.25 per DLH F1F1F1S1F1F1F10 2,592 DLHs
= $44,712

A Manufacturer of Industrial Equipment Has a Standard Costing System