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A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for
A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator level of activity | 3,300 | MHs | |
Overhead costs at the denominator activity level: | |||
Variable overhead cost | $ | 37,200 | |
Fixed overhead cost | $ | 38,370 | |
The following data pertain to operations for the most recent period:
Actual hours | 3,200 | MHs | |
Standard hours allowed for the actual output | 3,340 | MHs | |
Actual total variable manufacturing overhead cost | $ | 30,440 | |
Actual total fixed manufacturing overhead cost | $ | 39,560 | |
The predetermined overhead rate is closest to:
Multiple Choice
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$23.62 per hour
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$22.90 per hour
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$21.88 per hour
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$21.21 per hour
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