Dew Company employs standard costing and applies overhead based upon machine labor hours. Monthly production is scheduled at 500 units. Standard and actual data for the month is as follows:

Standards
Variable overhead	4 hours @ $10 per hour
Fixed overhead	4 hours @ $12 per hour

Actual
Units produced	550 units
Machine hours	2,375 hours

The standard hours allowed for the month are?

	A.	4,400
	B.	none of these
	C.	2,375
	D.	2,000
	E.	2,200

The budgeted hours for the month are?

	A.	2,375
	B.	4,400
	C.	2,200
	D.	none of these
	E.	2,000

 

 

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OptionE2200 Standard hours allowed Actual unit... View the full answer