A Manufacturer of Industrial Equipment Has a Standard Costing System

question 8

Multiple Choice

A manufacturer of industrial equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below:
$$\begin{array} { | l | r | l | } \hline \text { Level of activity' } & 2,500 & \mathrm { DLHs } \\\hline \text { Overhead costs at the denominator } & & \\\text { activity lev' el: } & & \\\hline \text { Variable overhead cost } & \$ 8,500 & \\\hline \text { Fred overhead cost } & \$ 34,625 & \\\hline\end{array}$$
The following data pertain to operations for the most recent period:
How much overhead was applied to products during the period to the nearest dollar?

• A) $44,712.
• B) $44,125.
• C) $43,125.
• D) $44,850.

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Definitions:

Human-Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Social-Capital

The interconnected web of interactions among individuals residing and operating within a specific community, facilitating the smooth functioning of that society.

Income Inequality

The uneven distribution of income within a population, leading to financial disparity among its members.

Official Definition

An explicitly stated and widely accepted explanation or meaning of a word or concept, often provided by a reputable or governing authority.