Mason Ltd Uses a Standard Costing System

question 40

Multiple Choice

Mason Ltd uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: The cost of direct materials added to work in process would be

• A) $540,000
• B) $585,000
• C) $600,000
• D) $650,000

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