Ballroom Balloons, Inc. 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:
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