Compute standard overhead cost per unit; compute total standard overhead for units produced during period. (Obj. 1). Newark Corporation uses direct labor hours as a basis for charging standard overhead to Work in Process. The standard overhead rate for 19X9 is based on a budget of 80,000 hours to produce 160,000 units. The budget at that level called for fixed overhead of $1,200,000 and variable overhead of $1,600,000. During the month of January, 14,000 units were produced. Fixed overhead was $51,000, and variable overhead was $7,140.

a. Determine the standard overhead cost per direct labor hour.

b. Compute the standard overhead cost per unit of product.

c. Compute the standard cost of the units completed in January.

LO.1