Question

A manufacturing company has a standard costing system based on standard direct labor-hours (DLHS) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: 6,800 DLHS Denominator level of activity Overhead costs at the denominator activity level: Variable overhead cost Fixed overhead cost $31,620 $ 95,540 The following data pertain to operations for the most recent period: Actual hours Standard hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost 7,000 DLHS 6,984 DLHS $30,800 $97.340 The overhead applied to products during the period was closest to: (Round your intermediate calculations to 2 decimal places.)
A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 The correct answer is $ 130900 4 Explanation and calculations 6 Firstly we have to calculate the standard overhead rate 7 = Total overheads/budgeted direct labour hours 8 =(31620+95540)/6800 9 = $ 18.7 11 Overheads applied = actual direct labour hours * standard overhead rate 12 = 7000*18.7 13 = $ 130900 15 Thus the correct answer is $ 130900