Tachy -Tachy Food has the following information about the standards and producti

Question

Tachy -Tachy Food has the following information about the standards and production activity for November

Actual manufacturing overhead cost incurred $85,000

Standard Manufacturing Overhead:

Variable manufacturing overhead coast @ $5.75 per unit produced

Fixed manufacturing overhead cost @ $8.45 per unit produced ($84,500/10,000) budgeted units

Actual units produced, 12,000

Assume the allocated base overhead costs is the number of units to be produced

How much are the standar overhead costs allocated to actual production?

Explanation / Answer

standard allocation cost = 12000*(5.75+8.45) =170400

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