The Marlow Corporation Uses a Standard Cost System and Applies

question 115

Multiple Choice

The Marlow Corporation uses a standard cost system and applies manufacturing overhead to products on the basis of standard direct labor-hours.The denominator activity is set at 40,000 direct labor-hours per year.Budgeted fixed manufacturing overhead cost is $40,000 per year, and 0.5 direct labor-hours are required to manufacture one unit.The standard cost card would indicate fixed manufacturing overhead cost per unit to be:

• A)$1.00
• B)$2.00
• C)$1.50
• D)$0.50

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