The Following Information Is Available for the Danske Company Danske Company Had Total Underapplied Overhead of $15,000

question 50

Multiple Choice

The following information is available for the Danske Company:
$\begin{array}{lrr} \text { Denominator hours for May } &15,000\\ \text {Actual hours worked during May } &14,000\\ \text {Standard hours allowed for May } &12,000\\ \text {Flexible budget fixed overhead cost } &\$45,000\\\text { Actual fixed overhead costs for May } &\$48,000\\\end{array}$

Danske Company had total underapplied overhead of $15,000. Additional information is as follows:
$\begin{array}{c}\begin{array}{lll} \text {Variable Overhead:}\\ \text {Applied based on standard direct labor hours allowed }\\\text { Budgeted based on standard direct labor hours}\\\\ \text {Fixed Overhead:}\\ \text {Applied based on standard direct labor hours allowed }\\ \text {Budgeted based on standard direct labor hours}\end{array}\begin{array}{lll}\\\$42,000\\38,000\\\\\\\$30,000\\27,000\end{array}\end{array}$


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What is the actual total overhead for the period?

• A) $50,000.
• B) $45,000.
• C) $80,000.
• D) $87,000.

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Definitions:

Overhead Applied

The process of assigning or allocating overhead costs to products or cost objects based on a predetermined overhead rate.

Job M825

A specific identifier for a job order, project, or batch within a job-order costing system, used to accumulate and track costs associated with that job.

Overhead Applied

The portion of overhead costs allocated to individual units of production.

Total Job Cost

The sum of all costs assigned to a specific job or project, including materials, labor, and overhead.