Pizzi,IncHad the Following Fixed Manufacturing Overhead Variances Last Year

question 93

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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