(Appendix 10A) Tantanka Manufacturing Corporation Uses a Standard Cost System

question 87

Multiple Choice

(Appendix 10A) Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year:
The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500.
-What did Tantanka use as a predetermined overhead rate for fixed manufacturing overhead?

• A) $85.50 per machine-hour
• B) $86.64 per machine-hour
• C) $87.40 per machine-hour
• D) $90.00 per machine-hour