Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct...

Question 2
.
Questio
n :
(TCO 10) Sebastian Company, which manufactures electrical switches, uses a
standard cost system and carries all inventories at standard. The standard
manufacturing overhead costs per switch are based on direct labor hours and are
shown below:
Variable overhead (5 hours at $12 per direct manufacturing labor hour) $ 60
Fixed overhead (5 hours at $15 per direct manufacturing labor hour,
based on capacity of 200,000 direct manufacturing labor hours per month)
75
Total overhead per switch $ 135

The following information is available for the month of December:
 46,000 switches were produced, although 40,000 switches were scheduled
to be produced.
...