Pizzi, Inc

question 110

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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