Diehl Corporation Uses a Standard Cost System in Which It

Multiple Choice

Diehl Corporation uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours.The company's total applied factory overhead was $315,000 last year when the company used 32,000 direct labor-hours as the denominator activity.If the variable factory overhead rate was $8 per direct labor-hour,and if 30,000 standard direct labor-hours were allowed for the output of the year,then the total budgeted fixed factory overhead for the year must have been:

A) $60,000
B) $80,000
C) $90,000
D) $100,000