A furniture manufacturer 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)$86,394
B)$88,440
C)$89,760
D)$92,555

Question

A furniture manufacturer 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)$86,394 
B)$88,440 
C)$89,760 
D)$92,555

Quizplus · Accepted Answer

Overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Standards hours allowed for the actual output
= $13.20 per hour F1F1F1S1F1F1F10 6,545 hours = $86,394

A Furniture Manufacturer Has a Standard Costing System Based on Standard