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Crown Industries has the following information about its standards and production activity for December:

Actual manufacturing overhead cost incurred, $92,500
Variable manufacturing overhead cost @ $3.25 per unit produced
Fixed manufacturing overhead cost @ $1.50 per unit produced
($22,500/15,000 budgeted units)
Actual units produced, 5,400

Assume the allocation base for fixed overhead costs is the number of units to be produced.

How much are the total applied overhead for the month?

A) $48,750

B) $92,500

C) $71,250

D) $25,650

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M946909

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