Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases. Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours. The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours. The actual results for last year were as follows:
-What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year?
A) $512,640
B) $548,000
C) $564,800
D) $569,600

Question

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases. Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours. The overhead standards used at Wriphoff are as follows:  The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours. The actual results for last year were as follows: 
-What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year?
A) $512,640 
B) $548,000 
C) $564,800 
D) $569,600

Quizplus · Accepted Answer

Variable manufacturing overhead cost = $12 per unit x 35,600 units = $427,200Fixed manufacturing overhead cost = $120,000Total manufacturing overhead cost = $427,200 + $120,000 = $547,200

Wriphoff Company Uses a Standard Cost System to Collect Costs