Ferro Enterprises Uses a Standard Cost System in Which It

question 57

Multiple Choice

Ferro Enterprises uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.During the month of September,the company applied $52,000 in fixed manufacturing overhead cost to units of product.At the end of the month,manufacturing overhead was overapplied by $3,000.If there was no volume variance in September,then the budgeted fixed manufacturing overhead cost for the month was:

• A) $49,000
• B) $52,000
• C) $55,000
• D) $58,000

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