One Unit Requires 2 Direct Labor Hours to Produce

question 135

Multiple Choice

One unit requires 2 direct labor hours to produce.Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75.If 330 units were produced this month,what total amount of overhead is applied to the units produced?

• A)$990
• B)$1,980
• C)$660
• D)cannot be determined without knowing the actual hours worked

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Definitions:

Support Staff

Employees who provide administrative or technical support to an organization, enabling primary operations without being directly involved.

Formalization

The extent to which organizations use rules, procedures, and structured communication to govern behaviors and operations.

Centralization

The concentration of decision-making authority at higher levels within an organization.

Specialization

The process of focusing on a specific area of knowledge or skill, often to increase efficiency or expertise.