A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period:
-How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?
A) $59,210
B) $59,907
C) $61,120
D) $58,110

Question

A manufacturer of playground equipment has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:  The following data pertain to operations for the most recent period: 
-How much fixed manufacturing overhead was applied to products during the period to the nearest dollar?
A) $59,210 
B) $59,907 
C) $61,120 
D) $58,110

Quizplus · Accepted Answer

The fixed manufacturing overhead applied to products is calculated based on the predetermined overhead rate and the actual activity level. The closest value to the calculated amount is $59,907.

A Manufacturer of Playground Equipment Has a Standard Costing System