Solved

Andy IncIs a Business Using a Standard Costing System and Applying

Question 68

Multiple Choice

Andy Inc.is a business using a standard costing system and applying overhead cost based on direct labour-hours.For April,total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month.The standard cost card indicates that each unit of finished product requires 2 direct labour-hours.The following data are available for April's activity: Andy Inc.is a business using a standard costing system and applying overhead cost based on direct labour-hours.For April,total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month.The standard cost card indicates that each unit of finished product requires 2 direct labour-hours.The following data are available for April's activity:   What amount of total overhead cost would have been applied to production for the month of April? A)  $76,000. B)  $78,000. C)  $79,500. D)  $80,000. What amount of total overhead cost would have been applied to production for the month of April?


A) $76,000.
B) $78,000.
C) $79,500.
D) $80,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions