Total overhead cost during budget

Reference no: EM13123607

Overhead cost is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours for the month. The standard cost card indicates that each unit of finished product requires 2 direct labor-hours. The following data are available for April's activity:

Number of units produced 9,500

Direct labor hours worked 19,500

Actual total overhead cost incurred $79,500

What amount of total overhead cost would have been applied to production for the month of April?

a. $76,000.

b. $78,000.

c. $79,500.

d. $80,000.

Reference no: EM13123607

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