Question

YummyminusTummy Foods has the following information about its standards and production activity for​ November: Actual manufacturing overhead cost​ incurred, $ 81 comma 000 Standard manufacturing​ overhead: Variable manufacturing overhead cost​ @ $ 3.75 per unit produced Fixed manufacturing overhead cost​ @ $ 6.50 per unit produced ​($ 52 comma 000​/8 comma 000 budgeted​ units) Actual units​ produced, 15 comma 000 Assume the allocation base for fixed overhead costs is the number of units to be produced. How much are the standard overhead costs allocated to actual​ production?

Answer 1

$153,750

Step-by-step explanation:

The computation of the allocated standard overhead cost is shown below:

= Number of Actual units produced × (Variable manufacturing overhead cost​ per unit + Fixed manufacturing overhead cost​ per unit)

= 15,000 units × ($3.75 per unit + $6.50 unit)

= 15,000 units × $10.25 per unit

= $153,750

This (Variable manufacturing overhead cost​ per unit + Fixed manufacturing overhead cost​ per unit) is also known as standard cost per unit