Dori Castings Is a Job Order Shop That Uses a Standard

question 135

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours.
-What amount of fixed overhead would Dori apply to finished production?

• A) The actual direct labour hours multiplied by the standard fixed overhead rate per direct labour hour.
• B) The standard hours allowed for the actual units of finished output multiplied by the standard fixed overhead rate per direct labour hour.
• C) The standard units of output for the actual direct labour hours worked multiplied by the standard fixed overhead rate per unit of output.
• D) The actual fixed overhead cost per direct labour hour multiplied by the standard hours allowed for standard output.

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