Seroka Corporation Estimates That Its Variable Manufacturing Overhead Is $6

question 80

Multiple Choice

Seroka Corporation estimates that its variable manufacturing overhead is $6.90 per machine-hour and its fixed manufacturing overhead is $745,290 per period.
-If the denominator level of activity is 9,000 machine-hours,the fixed element in the predetermined overhead rate would be:

• A)$6.90
• B)$89.71
• C)$690.00
• D)$82.81

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Definitions:

Credit Balance

Occurs when the amount paid is greater than was due or the account is being paid in advance of service provided.

Processing Fee

A charge assessed for the handling, processing, or servicing of an application, transaction, or purchase.

Monthly Billing

A payment structure where charges for services or utilities are invoiced to customers every month.

Processing and Mailing

The series of operations involved in preparing and sending documents or packages through postal or courier services.