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question 21

Multiple Choice

[The following information applies to the questions displayed below.]
The Starbright Corporation has compiled the following data.The company intends to use this information to develop standard costs per unit for its single product:
Direct materials = $50 per ton
Direct labor = $12.75 per hour
Variable manufacturing overhead = $5 per direct labor hour
Fixed manufacturing overhead = $18,700
Expected production = 1,700 units
Each unit of the company's single product requires 2.5 tons of direct materials and 22.5 hours to manufacture.
-What is the standard total manufacturing overhead cost?

• A)$191,250
• B)$18,700
• C)$487,900
• D)$209,950

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