The Following Budget Data Pertain to the Machining Department of Yolkenverst

question 145

Multiple Choice

The following budget data pertain to the Machining Department of Yolkenverst Co.:The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production (outputs) .
The standard fixed overhead application rate for the Machining Department (to two decimal places) is:

• A) $2.89 per machine hour.
• B) $3.40 per machine hour.
• C) $3.47 per machine hour.
• D) $4.08 per machine hour.
• E) $8.50 per machine hour.

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