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One Unit Requires 2 Direct Labor Hours to Produce

Question 135

Multiple Choice

One unit requires 2 direct labor hours to produce.Standard variable overhead per unit is $1.25 and standard fixed overhead per unit is $1.75.If 330 units were produced this month,what total amount of overhead is applied to the units produced?


A) $990
B) $1,980
C) $660
D) cannot be determined without knowing the actual hours worked

Correct Answer:

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