Dori Castings is a job order shop that uses a standard cost system. Manufacturing overhead costs are applied on the basis of standard direct labor-hours.The amount of fixed manufacturing overhead that Dori would apply to finished production would be:

A. the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour.
B. the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour.
C. the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.
D. the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output.


Answer: B

Business

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