(Appendix 11A)Oldham Corporation Bases Its Predetermined Overhead Rate on Variable

question 23

Multiple Choice

(Appendix 11A) 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

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