Tiara Industries Has the Following Information About Its Standards and Production

question 71

Multiple Choice

Tiara Industries has the following information about its standards and production activity for December: Actual manufacturing overhead cost incurred, $90,000
Variable manufacturing overhead cost @ $5.00 per unit produced
Fixed manufacturing overhead cost @ $3.00 per unit produced
($51,000/17,000 budgeted units)
Actual units produced, 5200
Assume the allocation base for fixed overhead costs is the number of units to be produced.
How much are the standard overhead costs allocated to actual production?

• A)$85,000
• B)$90,000
• C)$136,000
• D)$41,600

---

Definitions:

Specific Stock

Refers to the individual securities or shares issued by a company, representing ownership in that company.

Dow Jones

An American stock market index that shows how 30 large, publicly-owned companies based in the United States have traded during a standard trading session.

Price-Weighted Average

A stock index in which each company's influence on the index's performance is proportional to its stock price.

International Sales

Revenue generated from the sale of products or services outside of the company's home country.