Cotta Cots uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). During August, the company actually used 6,100 direct labor-hours and produced 2,500 units of product. The standard cost card for one unit of product includes the following data for manufacturing overhead:
Variable overhead: 2.5 DLHs @ $3.00 per DLH.
Fixed overhead:
To calculate the total manufacturing overhead applied to the units of product, you need to determine the standard cost rate for both variable and fixed overhead, and then multiply them by the actual direct labor-hours used.
First, let's calculate the variable overhead cost rate:
Variable overhead cost rate = Variable overhead rate per DLH
Variable overhead cost rate = $3.00 per DLH
Next, let's calculate the variable overhead applied to the units of product:
Variable overhead applied = Variable overhead cost rate * Actual direct labor-hours used
Variable overhead applied = $3.00 per DLH * 6,100 DLHs
Now, let's calculate the fixed overhead cost rate. However, the information about the fixed overhead rate is missing from the question. Please provide the fixed overhead rate, and I will be able to calculate the fixed overhead applied to the units of product.