Orange,Inc.has identified the following cost drivers for its expected overhead costs for the year:
Total direct labor hours budgeted = 2,000 hours.
The following data applies to Product X,one of the products completed during the year
If a volume-based costing system based on direct labor hours to assign overhead is used,the total overhead cost for Product X will be:
A)$1,500.
B)$1,560.
C)$2,000.
D)$2,400.
E)$2,560.

Question

Orange,Inc.has identified the following cost drivers for its expected overhead costs for the year: 
Total direct labor hours budgeted = 2,000 hours.
The following data applies to Product X,one of the products completed during the year 
If a volume-based costing system based on direct labor hours to assign overhead is used,the total overhead cost for Product X will be:
A)$1,500. 
B)$1,560. 
C)$2,000. 
D)$2,400. 
E)$2,560.

Quizplus · Accepted Answer

The Answer of Orange,Inc.has identified the following cost drivers for its expected overhead costs for the year: 
Total direct labor hours budgeted = 2,000 hours.
The following data applies to Product X,one of the products completed during the year 
If a volume-based costing system based on direct labor hours to assign overhead is used,the total overhead cost for Product X will be:
A)$1,500. 
B)$1,560. 
C)$2,000. 
D)$2,400. 
E)$2,560.