Use the Information Below to Answer the Following Question(s)

question 73

Multiple Choice

Use the information below to answer the following question(s) .Regal Company uses a single cost pool for fixed manufacturing overhead.The amount for June 2019 was budgeted at $500,000; however, the actual amount was $700,000.Actual production for June was 12,500 units, and actual machine hours were 10,000.Budgeted production included 17,750 units and 12,375 machine hours.
-What is Regal Company's budgeted fixed overhead rate per machine hour?

• A)$28.17 per machine hour
• B)$39.44 per machine hour
• C)$40.40 per machine hour
• D)$56.56 per machine hour
• E)$65.17 per machine hour

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systemic risk and expected return for assets, particularly stocks, used to calculate a theoretically appropriate required rate of return for an asset, given its non-diversifiable risk.

Expected Rate

The anticipated return on an investment based on historical averages, interest rates, or economic indicators.

Illiquidity Premiums

Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.

Systematic Risk Factors

Events or conditions that affect all assets to some degree, such as macroeconomic changes, geopolitical incidents, or widespread financial crises.