The overhead applied to products during the period was closest to:

A) $151,993
B) $154,410
C) $157,200
D) $153,270

Question

The overhead applied to products during the period was closest to:A) $151,993B) $154,410C) $157,200D) $153,270

Colette Brooks · Accepted Answer

Final Answer : A, Explanation :  Predetermined overhead rate = Estimated total manufacturing overhead ÷ Denominator level of activity= ($56,400 + $100,800)÷ 8,000 DLHs= $157,200 ÷ 8,000 DLHs= $19.65 per DLHOverhead applied = Predetermined overheard rate × Standard hours allowed for the actual output= $19.65 per DLH × 7,735 DLHs= $151,992.75Reference: APP10A-Ref25(Appendix 9A)Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs)as follows:Standard overhead costs per unit:Variable portion: 2 DLHs × $3 per DLH = $6Fixed portion: 2 DLHs × $5 per DLH = $10The following data pertain to operations in April:

The overhead applied to products during the period was closest to:

A) $151,993
B) $154,410
C) $157,200
D) $153,270

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