(Appendix 11A)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: The following data pertain to operations for the most recent period: The overhead applied to products during the period was closest to:
A)$112, 850
B)$113, 415
C)$116, 550
D)$110, 889

Question

(Appendix 11A)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:  The following data pertain to operations for the most recent period:  The overhead applied to products during the period was closest to:
A)$112, 850 
B)$113, 415 
C)$116, 550 
D)$110, 889

Quizplus · Accepted Answer

Variable overhead + Fixed overhead = $35, 075 + $77, 775
Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the allocation base = $112, 850 ÷ 6, 100 MHs = $18.50 per MH
Overhead applied = Predetermined overheard rate × Standard hours allowed for the actual output
= $18.50 per MH × 5, 994 MHs = $110, 889

(Appendix 11A)A Manufacturing Company Uses a Standard Costing System in Which