Flambe Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 53

Multiple Choice

Flambe Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 22,000 machine-hours. The estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total fixed manufacturing overhead was $609,400. The predetermined overhead rate for the recently completed year was closest to:

• A) $36.35 per machine-hour.
• B) $27.70 per machine-hour.
• C) $33.32 per machine-hour.
• D) $8.65 per machine-hour.

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Definitions:

Dangerous

Involving potential risk or harm to safety, health, or well-being.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes to modify behaviors, perceptions, and physiological responses.

Immoral

Acting in ways that are considered by society to be wrong, unethical, or unjust.

Hypnotized Subjects

Individuals who are in a state of hypnosis, characterized by increased suggestibility, relaxation, and altered consciousness.