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The Cloward Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs).
The Cloward Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). During August, the company actually used 6,100 direct labor-hours and produced 2,500 units of product. The standard cost card for one unit of product includes the following data for manufacturing overhead: For August, the company incurred $16,150 of fixed overhead costs and recorded a $625 favorable volume variance. The amount of fixed overhead cost contained in the company's budget for August is
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