Odonell Corporation Estimates That Its Variable Manufacturing Overhead Is $11

question 25

Multiple Choice

Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period. If the denominator level of activity is 6,000 machine-hours, the variable component in the predetermined overhead rate would be:

• A)$93.94 per machine-hour
• B)$11.20 per machine-hour
• C)$105.14 per machine-hour
• D)$103.60 per machine-hour

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