Odonell Corporation Estimates That Its Variable Manufacturing Overhead Is $11

question 84

Multiple Choice

Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period.
-If the denominator level of activity is 1,000 machine-hours, the fixed component in the predetermined overhead rate would be:

• A)$24.23 per machine-hour
• B)$14.63 per machine-hour
• C)$960.00 per machine-hour
• D)$9.60 per machine-hour

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Definitions:

Reliability

Consistency of measurement.

Validity

The accuracy of a test in measuring what it is intended to measure.

Consistency

The adherence to the same principles, course, or form over time, often considered a hallmark of reliability or stability in contexts or behaviors.

Cognitive Psychology

The branch of psychology that studies mental processes including how people think, perceive, remember, and learn.