The Chase Company has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October:

-The amount of fixed manufacturing overhead cost applied to work in process during September was:
A)$47,832
B)$26,520
C)$42,432
D)$43,605

Question

The Chase Company has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . The company recorded the following activity and cost data relating to manufacturing overhead for October:

-The amount of fixed manufacturing overhead cost applied to work in process during September was:

-The amount of fixed manufacturing overhead cost applied to work in process during September was:
A)$47,832 
B)$26,520 
C)$42,432 
D)$43,605

Quizplus · Accepted Answer

Volume variance = Budgeted fixed overhead - Fixed overhead applied to work in process
$3,468 U = $45,900 - Fixed overhead applied to work in process
$3,468 = $45,900 - Fixed overhead applied to work in process
Fixed overhead applied to work in process = $45,900 - $3,468 = $42,432

The Chase Company Has a Standard Cost System in Which