40

Pebbles Company is a business using a normal costing system and applying fixed manufacturing overhead costs based on direct labour- hours. For April, total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month. The following data are available for April's activity: Number of units produced 9,500 Direct labour-hours worked 19,500 Actual total fixed overhead cost $79,500 incurred What amount of total fixed manufacturing overhead cost would have been applied to production for the month of April? $79,500 $78,000 $76,000 $80,000