Total amount of overhead applied to work in process

Reference no: EM13123588

Union Company uses a standard cost accounting system. The following overhead costs and production data are available for August:

Standard fixed overhead rate $1.00 per hour
Standard variable overhead rate $4.00 per hour
Denominator activity 40,000 hours
Actual hours 39,500 hours
Standard hours allowed for output 39,000 hours
Overapplied overhead $2,000

The total amount of overhead applied to work in process for August would be:

a. $195,000.

b. $197,000.

c. $197,500.

d. $199,500.

Reference no: EM13123588

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