instructions he Question t8 (of 30) Save 3.33 points A manufecturing campany use

Question

instructions he Question t8 (of 30) Save 3.33 points A manufecturing campany uses o standerd cosung sysem in which standard machine-hours MHis)is the meosure of scivity Dats from the companys teble budget for mecuig overhead are given below Denominator level of activity Overhead costs at the denominator activity level 6,100 MHs Variable overhead cost . $35,075 Fixed overhead cost… $77.77 The following data pertain to operations for the most recent period 6,300 MHs 5,994 MHs Actual hours hours allowed for the actual output Actual total variable manufacturing overhead cost Actual total fixed manufacturing overhead cost $36,540 $76,875 The overhead opplied to products during the period was closest to O $112850 O $113415 O $16.550 O $110.889

Explanation / Answer

Calculate overhead applied :

Predetermine overhead rate = Total overhead/Total hours

                                          = (35075+77775)/6100

Predetermine overhead rate = 18.5 per hour

Overhead applied = 18.5*6300 = 116550

so answer is c) $116550

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