Andy IncIs a Business Using a Standard Costing System and Applying

question 68

Multiple Choice

Andy Inc.is a business using a standard costing system and applying overhead cost based on direct labour-hours.For April,total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month.The standard cost card indicates that each unit of finished product requires 2 direct labour-hours.The following data are available for April's activity: What amount of total overhead cost would have been applied to production for the month of April?

• A) $76,000.
• B) $78,000.
• C) $79,500.
• D) $80,000.

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Definitions:

Revaluation Of Land

The process of adjusting the book value of land to reflect its current market value, often leading to an increase in assets on the balance sheet.

Ownership Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing owners' share in the company.

Capital Balances

The amount of money or value that partners or owners have invested in a business.

Salary Allowance

A fixed amount of money given to employees in addition to their regular salary, often covering specific expenses or compensations.