The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours.
-The total amount of overhead cost applied to Work in Process during November was:
A)$47,520
B)$66,528
C)$106,528
D)$114,048

Question

The Chase Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard machine-hours. For November, the company's flexible budget for manufacturing overhead showed the following total budgeted costs at the denominator activity level of 40,000 machine-hours: During November 42,000 machine-hours were used to complete 13,200 units of product with the following actual overhead costs: The standard time allowed to complete one unit of product is 3.6 machine-hours.
-The total amount of overhead cost applied to Work in Process during November was:
A)$47,520 
B)$66,528 
C)$106,528 
D)$114,048

Quizplus · Accepted Answer

Overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Standard hours allowed for the actual output
= $2.40 per machine-hour F1F1F1S1F1F1F10 (13,200 units F1F1F1S1F1F1F10 3.6 machine-hours per unit)
= $2.40 per machine-hour F1F1F1S1F1F1F10 47,520 machine-hours = $114,048

The Chase Company Uses a Standard Cost System in Which