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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Definitions:

Convertible Bond

A type of bond that can be converted into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily coincide with its market value.

Expiration Date

In finance, this term often refers to the date on which a derivative contract, such as an option or futures contract, becomes void and ceases to trade.

Option Contract

A financial derivative contract that grants the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.