One unit requires 2 direct labor hours to produce.Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75.If 330 units were produced this month,what total amount of overhead is applied to the units produced?
A)$990
B)$1,980
C)$660
D)cannot be determined without knowing the actual hours worked

Question

Quizplus · Accepted Answer

The total overhead applied is calculated by adding the standard variable overhead and the standard fixed overhead per unit, then multiplying by the number of units produced. The calculation is (2 hours * $1.25 + $1.75) * 330 = $990.

One Unit Requires 2 Direct Labor Hours to Produce