Favreau Corporation Estimates That Its Variable Manufacturing Overhead Is $6

question 14

Multiple Choice

Favreau Corporation estimates that its variable manufacturing overhead is $6.10 per machine-hour and its fixed manufacturing overhead is $352,590 per period.
-If the denominator level of activity is 6,900 machine-hours,the variable element in the predetermined overhead rate would be:

• A)$6.10
• B)$51.10
• C)$57.20
• D)$56.47

---

Definitions:

Equity

Equity represents ownership interest in a company, reflected by the shares issued by the corporation, entitling shareholders to company profits.