Tillinghast Corporation Estimates That Its Variable Manufacturing Overhead Is $9

question 1

Multiple Choice

Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per machine-hour and its fixed manufacturing overhead is $14,630 per period. If the denominator level of activity is 1,000 machine-hours, the variable component in the predetermined overhead rate would be:

• A)$22.90 per machine-hour
• B)$14.63 per machine-hour
• C)$24.23 per machine-hour
• D)$9.60 per machine-hour

---

Definitions:

Fundamental Attribution Error

A cognitive bias that involves overestimating the effect of personality or disposition and underestimating the effect of situational factors when interpreting the behaviors of others.

Defensive Attribution

A psychological process by which individuals tend to attribute more blame to victims and less to perpetrators when they see themselves as similar to the victim.

Behavioral Tendency

An inclination or predisposition of an individual to exhibit certain patterns of behavior.

Intuition

The ability to understand or know something immediately, without conscious reasoning.