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A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget

A manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity 6,800 DLHs
Overhead costs at the denominator activity level:
Variable overhead cost $ 31,710
Fixed overhead cost $ 96,810

The following data pertain to operations for the most recent period:

Actual hours 7,000 DLHs
Standard hours allowed for the actual output 6,984 DLHs
Actual total variable manufacturing overhead cost $ 30,890
Actual total fixed manufacturing overhead cost $ 97,430

The overhead applied to products during the period was closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

  • $129,500.00

  • $128,520.00

  • $132,300.00

  • $131,997.60

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