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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Andy IncIs a Business Using a Standard Costing System and Applying