The Predetermined Overhead Rate (Variable and Fixed)is $7

question 227

Multiple Choice

The predetermined overhead rate (variable and fixed) is $7.50 per machine hour,and the denominator activity level is 135,000 machine hours.If the variable portion of the predetermined overhead rate is $3.00 per machine hour,what is the budgeted fixed factory overhead for the year?

• A) $30,000.
• B) $607,500.
• C) $405,000.
• D) $1,012,500.

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