The Predetermined Overhead Rate (Variable and Fixed) Is $7

question 35

Multiple Choice

The predetermined overhead rate (variable and fixed) is $7.50 per machine-hour and the denominator activity level is 135,000 machine-hours. If the variable portion of the predetermined overhead rate is $3.00 per machine-hour, then the budgeted fixed factory overhead for the year is:

• A) $30,000
• B) $607,500
• C) $405,000
• D) $1,012,500

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Definitions:

Ringworm

A fungal infection of the skin characterized by red, itchy, circular patches.

Trichomycosis

A bacterial infection affecting hair shafts, primarily in humid regions, most commonly found in armpit hair.

Alopecia

A condition characterized by hair loss from the scalp or other parts of the body; can be temporary or permanent, and vary in pattern and severity.

Erythroderma

A severe and potentially life-threatening skin condition characterized by widespread redness and scaling that covers most of the body.