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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