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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
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 incurred | $79,500 |
What amount of total fixed manufacturing overhead cost would have been applied to production for the month of April?
Group of answer choices
$79,500
$78,000
$80,000
$76,000
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