Dori Castings Is a Job Order Shop That Uses a Standard

question 124

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

• A) the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour.
• B) the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour.
• C) the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output.
• D) the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.