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Miami Fashions uses standard costs for their manufacturing division. From the following data, calculate the fixed overhead allocated to production based on direct labor hours (DLHr).

Actual fixed overhead   $40,000
Budgeted fixed overhead   $23,000
Standard overhead allocation rate   $8
Standard direct labor hours per unit   3 DLHr
Actual output   2,500 units

A) $60,000
B) $20,000
C) $40,000
D) $23,000
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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