Royal Industries Has the Following Information About Its Standards and Production

question 111

Multiple Choice

Royal Industries has the following information about its standards and production activity for January: Actual manufacturing overhead cost incurred,$86,500
Variable manufacturing overhead cost @ $2.50 per unit produced
Fixed manufacturing overhead cost @ $2 per unit produced
($24,000/12,000 budgeted units)
Actual units produced,4,500
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)$54,000
• B)$30,000
• C)$86,500
• D)$20,250

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