A Manufacturer of Playground Equipment Has a Standard Costing System

question 193

Multiple Choice

A manufacturer of playground equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 3,000 \mathrm{MHs} \\\hline \text { Fixed Overhead Cost } & \$ 40,650 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|l|r|}\hline \text { Actual Hours } & 3,400 \mathrm{MHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,172 \mathrm{MHs} \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 41,600 \\\hline\end{array}$
-How much fixed overhead was applied to products during the period,rounded to the nearest dollar?

• A) $40,650.
• B) $41,600.
• C) $42,981.
• D) $46,070.

---

Definitions:

Analytics

Analytics involves the systematic computational analysis of data or statistics, used for the discovery, interpretation, and communication of meaningful patterns in data.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Strategic Decisions

High-level choices that determine the overall direction of an organization.

Relevant Analytics

Data analysis techniques that are applicable and useful for making informed decisions in a particular context or industry.