Question
Overhead cost is applied to units based on direct labour hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity
Overhead cost is applied to units based on direct labour hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour hours for the month. The standard cost card indicates that each unit of finished product requires 2 direct labour hours. The following data are available for April's activity: Number of Units Produced $9,500 Direct Labour Hours Worked $19,500 Actual Total Overhead Cost Incurred $79,500 What was the amount of total overhead cost applied to production for the month of April?
Multiple Choice
$80,000.
$76,000.
$79,500.
$78,000.
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