(Appendix 11A)Pierce Corporation Uses a Standard Cost System in Which

question 91

Essay

(Appendix 11A)Pierce Corporation uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs).Below is the standard cost card for the product: Last year, the company produced 6, 000 units of product using 17, 000 direct labor-hours.The actual total fixed manufacturing overhead cost for the year was $140, 000 and the volume variance was $12, 000, favorable.
Required:
a.Determine the budgeted amount of total fixed manufacturing overhead cost.
b.Determine the denominator activity figure that the company used in computing predetermined overhead rates.