(Appendix 11A)The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs).The company recorded the following activity and cost data for May: The amount of fixed manufacturing overhead cost applied during May was:
A)$52, 535
B)$54, 135
C)$36, 090
D)$50, 400

Question

(Appendix 11A)The Murray Corporation uses a standard cost system in which it applies manufacturing overhead on the basis of standard direct labor-hours (DLHs).The company recorded the following activity and cost data for May:  The amount of fixed manufacturing overhead cost applied during May was:
A)$52, 535 
B)$54, 135 
C)$36, 090 
D)$50, 400

Quizplus · Accepted Answer

Fixed manufacturing overhead cost applied to work in process = 40, 100 units × 1.5 DLHs per unit × $0.90 per DLH = $54, 135

(Appendix 11A)The Murray Corporation Uses a Standard Cost System in Which