Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A manufacturing company 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 manufacturing company 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 | 5,800 | MHs |
Overhead costs at the denominator activity level: | ||
Variable overhead costs | $31,730 | |
Fixed overhead cost | $79,630 |
The following data pertain to operations for the most recent period:
Actual hours | 6,000 | MHs |
Standard hours allowed for the actual output | 5,984 | MHs |
Actual total variable manufacturing overhead cost | $30,910 | |
Actual total fixed manufacturing overhead cost | $97,450 |
The overhead applied to products during the period was closest to: (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
$112,340
$114,893
$115,200
$111,360
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started