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:
-How much overhead was applied to products during the period to the nearest dollar?
A)$128,140
B)$130,601
C)$130,900
D)$127,160

Question

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: 
-How much overhead was applied to products during the period to the nearest dollar?
A)$128,140 
B)$130,601 
C)$130,900 
D)$127,160

Quizplus · Accepted Answer

Overhead applied = Predetermined overhead rate F1F1F1S1F1F1F10 Standard hours allowed for the actual output
= $18.70 per MH F1F1F1S1F1F1F10 6,984 MHs = $130,600.80

A Manufacturing Company Uses a Standard Costing System in Which