Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which

Multiple Choice

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

- Calculate the applied fixed overhead.

A) $973,080
B) $855,030
C) $964,000
D) $910,000
E) None of these.