Ponca City Company Uses a Standard Cost Accounting System $~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ $1
Standard Variable OH Rate Ga DLH

question 209

Multiple Choice

Ponca City Company uses a standard cost accounting system.The following overhead costs and production data are available for September: Standard fixed OH rate par DLH $~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ $1
Standard variable OH rate ga DLH $~~~~~~~~~~~~~~~~~~~~~~~~~$ $4
Budgeted monthly DLHs $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ 40,000
Actual DLHs vorked $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ 39,500
Standard DLHs allowed far actual production $~~~~~~~~~~~$ 39,000
Ovarall OH variance-favorable $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~$ 52,000 The total applied manufacturing overhead for September should be

• A)$195,000.
• B)$197,000.
• C)$197,500.
• D)$199,500.

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Definitions:

Expected Costs

The anticipated expenses associated with the production of goods or services or the undertaking of an activity, based on historical data, trends, and analysis.

Economic Profit

The contrast between earnings from outputs sold and the opportunity cost of using specific inputs.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, expressed as an annual percentage of the principal.