A manufacturing company 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: Denominator level of activity 3,700DLHsOverhead costs at the denominator activity level: Variable overhead cost$28,490 Fixed overhead cost$47,545 ?The following data pertain to operations for the most recent period: Actual hours 3,900DLHsStandard hours allowed for the actual output 3,850DLHsActual total variable manufacturing overhead cost$29,445 Actual total fixed manufacturing overhead cost$47,995 The predetermined overhead rate per MH is closest to:
A. $19.86 per MH
B. $20.55 per MH
C. $19.50 per MH
D. $20.93 per MH
Answer: B
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