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

question 71

Multiple Choice

(Appendix 11A) Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20, 000 machine-hours: During June, 17, 000 machine-hours were used to complete 13, 000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The total predetermined overhead rate per machine-hour for June was:

• A)$2.57 per machine-hour
• B)$1.30 per machine-hour
• C)$2.80 per machine-hour
• D)$3.15 per machine-hour

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