Miami Fashions uses standard costs for their manufacturing division

From the following data, calculate the fixed overhead allocated to production based on direct labor hours (DLHr).

Actual fixed overhead $40,000
Budgeted fixed overhead $23,000
Standard overhead allocation rate $8
Standard direct labor hours per unit 3 DLHr
Actual output 2,500 units

A) $23,000
B) $60,000
C) $40,000
D) $20,000


B .B) Overhead allocated to production = Standard overhead allocation rate x Standard quantity of the allocation base allowed for actual output

Business

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