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:

Mining Company

A business entity that specializes in the extraction of minerals or other geological materials from the earth.

Extraction Cost

The expenses associated with the removal of raw materials from their natural setting, which may include labor, equipment, and transportation costs.

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The total number of people inhabiting a particular area or country.