Garrity Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 21

Multiple Choice

Garrity Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $6.80 per machine-hour and fixed manufacturing overhead cost of $503,272 per period.If the denominator level of activity is 7,600 machine-hours,the variable element in the predetermined overhead rate would be:

• A) $6.80
• B) $72.16
• C) $66.22
• D) $73.02

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Definitions:

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