Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours. The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity. If the variable factory overhead rate was $8 per direct labor-hour, and if 30,000 standard direct labor-hours were allowed for the output of the year, then the total budgeted fixed factory overhead for the year must have been: (Round your intermediate calculations to 2 decimal places.)
A. $90,000
B. $80,000
C. $100,000
D. $60,000
Answer: B
Business
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