Diehl Corporation Uses a Standard Cost System in Which It

question 34

Multiple Choice

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour, and if 30,000 standard direct labor-hours were allowed for the output of the year, then the total budgeted fixed factory overhead for the year must have been:

• A)$60,000
• B)$80,000
• C)$90,000
• D)$100,000

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