Paul Co.is a business using a normal 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 following data are available for April's activity: What amount of total fixed 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

Paul Co.is a business using a normal 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 following data are available for April's activity:  What amount of total fixed 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 Paul Co.is a business using a normal 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 following data are available for April's activity:  What amount of total fixed 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.

Paul CoIs a Business Using a Normal Costing System and Applying