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figure 8. The following information was extracted from the accounting records of Noelle company for product Z:
STANDARD COSTING CARD
PER UNIT
Direct Materials: 8 pounds x $1.20 per pound
Direct labor: 3 hours x $20 per pound
Factory overhead: ?
Budgeted overhead to the period is $384,600 of fixed costs and $2.00 per direct labor hour. Planned number of units to be produced is 10,000.
The following information is available regarding the company's operations for the period:
Units produced 1,000
Direct labor 3,600 hours
Actual overhead incurred $54,460
Refer to figure 8. Noelles standard overhead rate is
$14.00
$14.34
$14.82
$4.00
$14.48
Refer to figure 8. Noelles amount of over/under applied overhead using standard costing would be
$2,600 underapplied
$11,000 underapplies
$21,000 underappllied
$100 underapplied
$10,000 undersupplied
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