Glasner Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 45

Multiple Choice

Glasner Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $2.70 per machine-hour and fixed manufacturing overhead cost of $289,784 per period. If the denominator level of activity is 8,800 machine-hours, the variable element in the predetermined overhead rate would be:

• A) $2.70
• B) $35.63
• C) $35.26
• D) $32.93