Hairr Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 87

Multiple Choice

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period. If the denominator level of activity is 8,900 machine-hours, the predetermined overhead rate would be:

• A)$9.50
• B)$115.98
• C)$106.48
• D)$950.00

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