Rubyor Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 84

Multiple Choice

Rubyor Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.70 per machine-hour and fixed manufacturing overhead cost of $821,104 per period.If the denominator level of activity is 7,300 machine-hours,the variable element in the predetermined overhead rate would be:

• A)$112.48
• B)$123.18
• C)$121.66
• D)$10.70

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