Tycoon Manufacturing Uses a Standard Costing System The Total Overhead Allocated Was:
A) $147,000
B) $98,000
C)

question 96

Multiple Choice

Tycoon Manufacturing uses a standard costing system. The standard time to produce one unit is 4 hours, and normal production is 5,000 units monthly. Overhead costs were estimated to be $250,000. The standard variable overhead rate is $5 per machine hour. During October the following results were recorded:
$\begin{array} { l l } \text { Units produced } & 4,900 \\\text { Units sold } & 4,600 \\\text { Machine hours required } & 20,500 \\\text { Actual overhead cost } & \$ 248,000\end{array}$
The total overhead allocated was:

• A) $147,000
• B) $98,000
• C) $245,000
• D) $252,500

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Definitions:

Reported Net Income

The net income that a company reports in its financial statements, which represents the company's total earnings after expenses, taxes, and costs are subtracted from total revenue.

Total Proceeds

The entire sum of money received from a transaction or series of transactions, often before any deductions or expenses are taken into account.

Sustaining Stock Price

Efforts or strategies employed by a corporation to maintain or support the current market price of its shares.

Excess Cash

The amount of cash available exceeding what is necessary for day-to-day operations, often allocated for investment or returned to shareholders.