Billa Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 133

Multiple Choice

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours,the predetermined overhead rate would be:

• A) $11.70
• B) $72.68
• C) $84.38
• D) $1,170.00

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