Pizzi, Inc

Multiple Choice

Pizzi, Inc. had the following fixed manufacturing overhead variances last year: Pizzi uses machine-hours as an activity base for overhead and used 48,000 machine-hours as the denominator activity level for the year. Total actual fixed manufacturing overhead was $150,000. The actual number of machine-hours incurred were 50,000. What were Pizzi's standard hours allowed for actual output?

A) 40,000
B) 42,000
C) 50,400
D) 52,500