(Appendix 11A)Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)as the activity base for overhead.The following information relates to Cuda's operations last year: What total amount of manufacturing overhead cost (variable and fixed)did Cuda apply to production?
A)$950, 000
B)$985, 000
C)$988, 000
D)$1, 045, 000

Question

(Appendix 11A)Cuda Manufacturing Corporation uses a standard cost system with machine-hours (MHs)as the activity base for overhead.The following information relates to Cuda's operations last year:  What total amount of manufacturing overhead cost (variable and fixed)did Cuda apply to production?
A)$950, 000 
B)$985, 000 
C)$988, 000 
D)$1, 045, 000

Quizplus · Accepted Answer

Manufacturing overhead cost applied = 55, 000 MHs × ($7 per MH + $12 per MH)
= 55, 000 MHs × ($19 per MH)= $1, 045, 000

(Appendix 11A)Cuda Manufacturing Corporation Uses a Standard Cost System with Machine-Hours