Heersink Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 46

Multiple Choice

Heersink Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.50 per machine-hour and fixed manufacturing overhead cost of $108,108 per period.If the denominator level of activity is 2,700 machine-hours,the fixed element in the predetermined overhead rate would be:

• A)$1,050.00
• B)$40.04
• C)$10.50
• D)$50.54

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