Question
132. Henley Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours. For
132. Henley Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours. For the month of January, the fixed manufacturing overhead volume variance was $2,220 favourable. The company uses a fixed manufacturing overhead rate of $1.85 per direct labour hour. What were the standard direct labour hours allowed for the month's output in January? A) B) C) They exceeded the denominator hours by 1,000. They fell short of the denominator hours by 1,000. They exceeded the denominator hours by 1,200. They fell short of the denominator hours by 1,200. Ans: C Difficulty: Hard D)
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