Recht Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 78

Multiple Choice

Recht Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per period.If the denominator level of activity is 1,200 machine-hours, the fixed element in the predetermined overhead rate would be:

• A)$14.95
• B)$930.00
• C)$24.25
• D)$9.30

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