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Overhead applied

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A furniture manufacturer has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity 5,400 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost 14,310
Fixed overhead cost 50,490

The following data pertain to operations for the most recent period:

Actual hours 5,900 DLHs
Standard hours allowed for the actual output 5,700 DLHs
Actual total variable overhead cost 16,225
Actual total fixed overhead cost 50,490

Reference: 11-14

How much overhead was applied to products during the period to the nearest dollar?

70,800
68,400
66,715
64,800

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This provides the steps to calculate the Overhead applied

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