Use the following to answer questions 93-96: Norman Enterprises has a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs). The company has provided the following data concerning its fixed manufacturing overhead costs for last year: Total actual fixed overhead cost incurred....... Fixed overhead cost overapplied... Number of units produced... Volume variance, unfavorable Standard labor-hours per unit.. $42,000 $6,000 12,500 $3,600 DLHS 96. The denominator activity level in direct labor-hours last year was: A) 20,000 B) 21,500 C) 22,000 D) 23,500 Answer: B Level: Hard LO: 5