Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Fixed manufacturing overhead During the most recent period, the following additional Information was available: • The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. • 46,000 direct labor-hours were actually used to produce 24,100 units. What is the standard hours allowed for the actual output? Multiple Choice O 92.000 hours 45,833 hours 48,200 hours Standard Hours. 2 hours. 47,500 hours Standard Rate $6.00 per hour Standard Cost $12.00

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard
cost card of its only product:
Fixed manufacturing overhead
During the most recent period, the following additional Information was available:
• The total actual fixed overhead cost was $275,000.
• The budgeted amount of fixed overhead cost was $285,000.
• 46,000 direct labor-hours were actually used to produce 24,100 units.
What is the standard hours allowed for the actual output?
Multiple Choice
O
92.000 hours
45,833 hours
48,200 hours
Standard Hours.
2 hours.
47,500 hours
Standard Rate
$6.00 per hour
Standard
Cost
$12.00
Transcribed Image Text:Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Fixed manufacturing overhead During the most recent period, the following additional Information was available: • The total actual fixed overhead cost was $275,000. • The budgeted amount of fixed overhead cost was $285,000. • 46,000 direct labor-hours were actually used to produce 24,100 units. What is the standard hours allowed for the actual output? Multiple Choice O 92.000 hours 45,833 hours 48,200 hours Standard Hours. 2 hours. 47,500 hours Standard Rate $6.00 per hour Standard Cost $12.00
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