Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. Last year, Ronda incurred $840,000 of fixed manufacturing overhead and generated a $42,000 favorable fixed manufacturing overhead budget variance. The following data relate to last years operations:

Denominator activity level in machine-hours	21,000
Standard machine-hours allowed for actual output	20,000
Actual number of machine-hours incurred	22,050

What amount of total fixed manufacturing overhead cost did Ronda apply to production last year?

Multiple Choice:

A) $837,900

B) $840,000

C) $926,100

D) $972,405