question archive Required information A manufacturer of industrial equipment has a standard costing system based on direct labour hours (DLHs) as the measure of activity

Required information A manufacturer of industrial equipment has a standard costing system based on direct labour hours (DLHs) as the measure of activity

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Required information

A manufacturer of industrial equipment has a standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

 

Denominator Level of Activity8,000 DLHsOverhead Costs at the Denominator Activity Level: Variable Overhead Cost$56,400Fixed Overhead Cost$100,800

 

The following data pertain to operations for the most recent period:

 Actual Hours7,800 DLHsStandard Hours Allowed for the Actual Output7,735 DLHsActual Total Variable Overhead Cost$54,210Actual Total Fixed Overhead Cost$100,200

How much overhead was applied to products during the period, rounded to the nearest dollar?

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