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

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

The Murray Corporation Uses a Standard Cost System in Which