Bakos Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 42

Multiple Choice

Bakos Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of $100,688 per period. If the denominator level of activity is 2,800 machine-hours, the variable component in the predetermined overhead rate would be:

• A)$44.76
• B)$35.96
• C)$43.52
• D)$8.80

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Definitions:

Make-to-order

A manufacturing process in which the production of an item begins only after a confirmed customer order is received.

Customer Order

A customer order is an official request made by a customer for a company's goods or services, typically documented and processed for fulfillment.

SCM

Supply Chain Management involves the management and control of materials, information, and financial flows from the supplier through to the manufacturer, then on to the wholesaler and retailer, and ultimately to the consumer.

Source Component

In software, a fundamental piece of code or module that contributes to the functionality of a larger application or system.