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Dori Castings Is a Job Order Shop That Uses a Standard

Question 106

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours.
-What amount of fixed overhead would Dori apply to finished production?


A) The actual direct labour hours multiplied by the standard fixed overhead rate per direct labour hour.
B) The standard hours allowed for the actual units of finished output multiplied by the standard fixed overhead rate per direct labour hour.
C) The standard units of output for the actual direct labour hours worked multiplied by the standard fixed overhead rate per unit of output.
D) The actual fixed overhead cost per direct labour hour multiplied by the standard hours allowed.

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