Keeran Corporation Estimates That Its Variable Manufacturing Overhead Is $5

question 173

Multiple Choice

Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period. If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

• A) $520.00 per machine-hour
• B) $39.68 per machine-hour
• C) $5.20 per machine-hour
• D) $44.88 per machine-hour

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