Hamilton Pty Ltd Uses a Standard Costing System for Product

question 25

Multiple Choice

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the amount of overhead cost applied to work in process inventory.

• A) $1 520 000
• B) $1 536 000
• C) $1 550 000
• D) $1 600 000

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Definitions:

Lawns Mowed

The activity of cutting the grass of a lawn to maintain its appearance and health.

Marginal Products

Marginal Product is the extra output, or product, produced by using one more unit of a production input, holding all other inputs constant.

Total Product

The total quantity of output produced by a firm over a given period.

Dogs Washed

The service or action of cleaning dogs by bathing them, often as a professional service.