Wintersmith Corporation Estimates That Its Variable Manufacturing Overhead Is $11

question 84

Multiple Choice

Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
-If the denominator level of activity is 4,300 machine-hours, the predetermined overhead rate would be:

• A) $76.28
• B) $64.68
• C) $1,160.00
• D) $11.60

---

Definitions:

Bounded Rationality Model

An approach suggesting that decision-making is limited by the information available, cognitive limitations of individuals, and the finite amount of time they have to make decisions.

Political Model

A framework in organizational studies that examines the use of power and influence by individuals and groups within an organization.

Radio-Frequency Identification (RFID)

A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, containing electronically-stored information.

Tag

A label or keyword assigned to categorize or identify information, making it easier to search or group related items.