Question

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 1,400 MHs Overhead costs at the denominator activity level: Variable overhead cost $ 12,040 Fixed overhead cost $ 17,360 The following data pertain to operations for the most recent period: Actual hours 1,300 MHs Standard hours allowed for the actual output 1,440 MHs Actual total variable manufacturing overhead cost $ 11,440 Actual total fixed manufacturing overhead cost $ 18,560 The overhead applied to products during the period was closest to

Answer 1

Budgeted total overhead	29400	=12040+17360
/ Denominator level of activity	1400
Predetermined overhead rate	21
Standard hours allowed for the actual output	1440
X Predetermined overhead rate	21
Overhead applied to products during the period	30240