Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60,000 ties.The actual results for last year were as follows: What total amount of manufacturing overhead cost (variable and fixed)did Vette apply to the 58,000 ties produced during the year?
A)$1,276,000
B)$1,403,600
C)$1,421,200
D)$1,452,000

Question

Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs).  The above standards were based on an expected annual volume of 60,000 ties.The actual results for last year were as follows:  What total amount of manufacturing overhead cost (variable and fixed)did Vette apply to the 58,000 ties produced during the year?
A)$1,276,000 
B)$1,403,600 
C)$1,421,200 
D)$1,452,000

Quizplus · Accepted Answer

Standard overhead cost per unit = $15.40 per unit + $8.80 per unit = $24.20 per unit
Standard overhead cost applied = $24.20 per unit × 58,000 units = $1,403,600

Vette Tie Corporation Has Developed the Following Manufacturing Overhead Standards