The Chase Company has a standard cost system in which manufacturing overhead is
ID: 2375235 • Letter: T
Question
The Chase Company has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October:
Activity:
Cost:
The standard time allowed to complete one unit of product is 4.1 machine-hours.
The total amount of overhead cost applied to Work in Process during November was:
Number of units completed 28,000 units Standard direct labor-hours per unit 3.2 DLHs Denominator activity 71,000 DLHsExplanation / Answer
$19,200 unfavorable
$102 F
$19,800