Exhibit 19-7 the Following Figures Represent 100% Capacity for Starr

question 81

Multiple Choice

Exhibit 19-7 The following figures represent 100% capacity for Starr Manufacturing:
Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 10,000 units of product, using variable manufacturing overhead costs of $20,000. The company used 6,400 direct labor hours in October instead of the 6,000 hours expected for the activity level achieved.
-Refer to Exhibit 19-7. Based on the information above, the standard variable manufacturing overhead cost in terms of actual direct labor hours is:

• A) $18,000
• B) $19,200
• C) $27,000
• D) $36,000

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