Pizzi, Inc

question 64

Multiple Choice

Pizzi, Inc. had the following fixed manufacturing overhead variances last year: Pizzi uses machine-hours as an activity base for overhead and used 48,000 machine-hours as the denominator activity level for the year. Total actual fixed manufacturing overhead was $150,000. The actual number of machine-hours incurred were 50,000. What were Pizzi's standard hours allowed for actual output?

• A)40,000
• B)42,000
• C)50,400
• D)52,500

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Definitions:

Cash Discount Stores

Retail outlets offering goods for sale at lower prices due to immediate payment instead of credit purchase.

Annuals

Plants that complete their life cycle, from germination to the production of seeds, within one year, and then die.

Garden Stores

Retail outlets specializing in the sale of plants, gardening tools, outdoor furniture, and other gardening and landscaping supplies.

Hybrid Company

A business entity that combines elements of different organizational structures, such as a mix of a corporation's limited liability features with a partnership's tax efficiencies.