Denominator level of activity

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Reference no: EM131208008

At the beginning of last year, Tari Corporation budgeted $400,000 of fixed manufacturing overhead and chose a denominator level of activity of 550,000 machine-hours. At the end of the year, Tari's fixed manufacturing overhead budget variance was $9,500 favorable. Its fixed manufacturing overhead volume variance was $15,200 favorable. Actual direct labor-hours for the year were 575,000. What was Tari's total standard machine-hours allowed for last year's output?

a. 415,200

b. 418,182

c. 570,900

d. 433,382

Reference no: EM131208008

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