The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow:
-The total standard cost for variable overhead for May was closest to:
A) $56,000
B) $40,000
C) $60,000
D) $50,000

Question

The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: 
-The total standard cost for variable overhead for May was closest to:
A) $56,000 
B) $40,000 
C) $60,000 
D) $50,000

Quizplus · Accepted Answer

To find the total standard cost for variable overhead, we need to multiply the actual hours worked during the month by the standard variable overhead rate per hour.

Actual hours worked = 44,000

Standard variable overhead rate per hour = $1.36 (given)

Total standard cost for variable overhead = 44,000 x $1.36 = $59,840

The closest answer choice to this value is C) $60,000.

The Clark Company Makes a Single Product and Uses Standard