Stopher Incorporated Makes a Single Product-A Cooling Coil Used in Commercial

question 137

Multiple Choice

Stopher Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

• A) $1.67 per machine-hour
• B) $1.81 per machine-hour
• C) $1.76 per machine-hour
• D) $1.19 per machine-hour

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