Oldham Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 105

Multiple Choice

Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, the fixed component in the predetermined overhead rate would be:

• A)$25.42
• B)$4.00
• C)$21.42
• D)$400.00

---

Definitions:

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Motivated

Having a desire or willingness to achieve something, often accompanied by enthusiasm.

Scientific Process

A systematic series of steps involving observation, experimentation, and the formulation and testing of hypotheses to acquire new knowledge.

Specific Hypotheses

Precise, testable predictions derived from theoretical frameworks that specify the expected relationship between variables.