Sheeder Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

question 52

Multiple Choice

Sheeder Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $18.70 per machine-hour and fixed manufacturing overhead cost of $1,817,202 per period. If the denominator level of activity is 8,200 machine-hours, the fixed element in the predetermined overhead rate would be:

• A) $18.70
• B) $1,870.00
• C) $240.31
• D) $221.61

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