Wolle Corporation Estimates That Its Variable Manufacturing Overhead Is $11

question 75

Multiple Choice

Wolle Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $298,936 per period.
-If the denominator level of activity is 4,300 machine-hours, the variable element in the predetermined overhead rate would be:

• A) $11.60
• B) $79.54
• C) $69.52
• D) $81.12

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Definitions:

Variance

A statistical measure of the dispersion of data points in a dataset, quantifying how far each data point lies from the mean.

Sum of Squared Deviations

The total of the squared differences between each observation and the mean of a dataset.

Standard Deviation

An indicator used to assess the degree to which data points diverge or scatter around the average value.

Range

The difference between the highest and lowest values in a dataset, showing the spread of the data.