Overhead Cost Is Applied to Units Based on Direct Labour

question 203

Multiple Choice

Overhead cost is applied to units based on direct labour hours.For April,total 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: $\begin{array} { l r } \text { Number of Units Produced } & \$ 9,500 \\\text { Direct Labour Hours Worked } & \$ 19,500 \\\text { Actual Total Overhead Cost Incurred } & \$ 79,500\end{array}$
What was the amount of total overhead cost 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:

Credits

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The act of changing one form of securities into another, such as converting bonds into shares of stock, or the process of changing one currency into another.

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Unrealized Holding

A profit or loss that arises from the change in value of an investment that has not yet been sold or realized.