Wriphoff Company Uses a Standard Cost System to Collect Costs

question 67

Multiple Choice

Wriphoff Company uses a standard cost system to collect costs related to the production of its clay bud vases. Manufacturing overhead at Wriphoff is applied to production on the basis of standard direct labor-hours. The overhead standards used at Wriphoff are as follows: The standards above were based on an expected annual volume of 40,000 bud vases or 36,000 direct labor-hours. The actual results for last year were as follows:
-What total amount of manufacturing overhead cost (variable and fixed) did Wriphoff apply to the 35,600 vases produced during last year?

• A) $512,640
• B) $548,000
• C) $564,800
• D) $569,600

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Definitions:

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