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

question 156

Multiple Choice

Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. Last year, Ronda incurred $840,000 of fixed manufacturing overhead and generated a $42,000 favorable fixed manufacturing overhead budget variance. The following data relate to last year's operations: What amount of total fixed manufacturing overhead cost did Ronda apply to production last year?

• A) $837,900
• B) $840,000
• C) $926,100
• D) $972,405

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