Canterberry Company uses the following overhead standard costs for a single unit of product: 8 hours at $12 per hour.Actual data for the month showed overhead costs of $138,500 for 1,400 units produced.What is the difference between actual overhead costs and standard overhead costs allocated to products?

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Quizplus · Accepted Answer

The standard overhead cost for 1,400 units is 1,400 units * 8 hours/unit * $12/hour = $134,400. The actual overhead cost is $138,500. The difference is $138,500 - $134,400 = $4,100, which is unfavorable because the actual cost is higher than the standard cost.

Canterberry Company Uses the Following Overhead Standard Costs for a Single