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At the beginning of last year, Tari Corporation budgeted $1,000,000 of fixed manufacturing overhead and...

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Accounting

At the beginning of last year, Tari Corporation budgeted $1,000,000 of fixed manufacturing overhead and chose a denominator level of activity of 400,000 machine-hours. At the end of the year, Tari's fixed manufacturing overhead budget variance was $12,500 favorable. Its fixed manufacturing overhead volume variance was $20,000 favorable. Actual direct labor-hours for the year were 425,000. What was Tari's total standard machine-hours allowed for last year's output?

A. 1,082,500

B. 1,062,500

C. 1,020,000

D. 408,000

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