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Dori Castings Is a Job Order Shop That Uses a Standard

Question 124

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system.Manufacturing overhead costs are applied on the basis of standard direct labor-hours. The amount of fixed manufacturing overhead that Dori would apply to finished production would be:


A) the actual direct labor-hours times the standard fixed manufacturing overhead rate per direct labor-hour.
B) the standard hours allowed for the actual units of finished output times the standard fixed manufacturing overhead rate per direct labor-hour.
C) the standard units of output for the actual direct labor-hours worked times the standard fixed manufacturing overhead rate per unit of output.
D) the actual fixed manufacturing overhead cost per direct labor-hour times the standard hours allowed.

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