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Compute the manufacturing overhead in the planning budget

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Problem - Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.

The manufacturing overhead in the planning budget for May would be closest to:

a. $98,340

b. $97,900

c. $102,710

d. $102,165

Reference no: EM131743844

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