Overhead is applied to units based on direct labor hours. For April, total overhead cost...
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Accounting
Overhead is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours for the month. The standard cost card indicates that each unit of finished product requires 2 hours of direct labor.
The following data is available for the April activity:
Number of units produced $9,500
Direct labor Hours worked $19,500
Actual total overhead incurred $79,500
What was the amount of total overhead applied to production in April?
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