Tachy -Tachy Food has the following information about the standards and producti
ID: 2372680 • Letter: T
Question
Tachy -Tachy Food has the following information about the standards and production activity for November
Actual manufacturing overhead cost incurred $85,000
Standard Manufacturing Overhead:
Variable manufacturing overhead coast @ $5.75 per unit produced
Fixed manufacturing overhead cost @ $8.45 per unit produced ($84,500/10,000) budgeted units
Actual units produced, 12,000
Assume the allocated base overhead costs is the number of units to be produced
How much are the standar overhead costs allocated to actual production?
Explanation / Answer
standard allocation cost = 12000*(5.75+8.45) =170400