Question: Pebbles Company is a business using a normal costing system and applying fixed manufacturing overhead costs based on direct labour-hours. For April, total fixed overhead

Pebbles Company is a business using a normal costing system and applying fixed manufacturing overhead costs based on direct labour-hours. For April, total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month. The following data are available for April's activity:

Number of units produced 9,500
Direct labour-hours worked 19,500
Actual total fixed overhead cost incurred $79,500

What amount of total fixed manufacturing overhead cost would have been applied to production for the month of April?

Group of answer choices

$79,500

$78,000

$80,000

$76,000

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