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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Definitions:

Enteral

Referring to the route of medication or nutrition administration directly into the intestines, usually through a tube.

Lipid-soluble

Refers to the ability of a substance to dissolve in fats, oils, and lipids, which influences its absorption and distribution within the body.

Water-soluble

Refers to substances that can dissolve in water, indicating their ability to mix with water at the molecular level to form a homogeneous solution.

Biotransformation

The process by which a substance changes from one chemical to another (metabolized) by the body.