What was the amount of total overhead cost applied

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Overhead cost is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80000 based on a denominator activity level of 20000 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 $9500
Direct labor hours worked $19500
Actual total overhead cost incurred $79500

Problem 1: What was the amount of total overhead cost applied to production for the month of April?

Option 1: $78000

Option 2: $76000

Option 3: $79500

Option 4: $80000

Reference no: EM132744463

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