Question
A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for
A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
| Budgeted/denominator level of activity | 3,700 | MHs |
| Overhead costs at the denominator activity level: |
|
|
| Variable overhead cost | $28,490 |
|
| Fixed overhead cost | $47,545 |
|
The following data pertain to operations for the most recent period:
| Actual hours | 3,900 | MHs |
| Standard hours allowed for the actual output | 3,850 | MHs |
| Actual total variable overhead cost | $29,445 |
|
| Actual total fixed overhead cost | $47,995 |
|
How much overhead was applied to products during the period to the nearest dollar?
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