The Cloward Company uses a standard cost system in which manufacturing overhead is applied to units...

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The Cloward Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). During August, the company actually used 6,100 direct labor-hours and produced 2,500 units of product. The standard cost for one unit of product includes the following data for manufacturing overhead: Fixed overhead: 2.5 DLHS @ $2.50 per DLH For August, the company incurred $16,150 of fixed overhead costs and recorded a $625 favorable production volume variance. The budgeted fixed overhead cost contained in the company's budget for August is: $15,000 $16,775 $16,250 $15,525 The Cloward Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). During August, the company actually used 6,100 direct labor-hours and produced 2,500 units of product. The standard cost for one unit of product includes the following data for manufacturing overhead: Fixed overhead: 2.5 DLHS @ $2.50 per DLH For August, the company incurred $16,150 of fixed overhead costs and recorded a $625 favorable production volume variance. The budgeted fixed overhead cost contained in the company's budget for August is: $15,000 $16,775 $16,250 $15,525

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