Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)as the activity base for overhead.The following information relates to Cuda's operations last year: What total amount of manufacturing overhead cost (variable and fixed)did Cuda apply to production?
A)$950,000
B)$985,000
C)$988,000
D)$1,045,000

Question

Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)as the activity base for overhead.The following information relates to Cuda's operations last year:  What total amount of manufacturing overhead cost (variable and fixed)did Cuda apply to production?
A)$950,000 
B)$985,000 
C)$988,000 
D)$1,045,000

Quizplus · Accepted Answer

Manufacturing overhead cost applied = 55,000 MHs × ($7 per MH + $12 per MH)
= 55,000 MHs × ($19 per MH)= $1,045,000

Cuda Manufacturing Corporation Uses a Standard Cost System with Machine-Hours