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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