(Appendix 11A) Bakos Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.80 per machine-hour and fixed manufacturing overhead cost of $100, 688 per period.If the denominator level of activity is 2, 800 machine-hours, the variable component in the predetermined overhead rate would be:
A) $44.76
B) $35.96
C) $43.52
D) $8.80
Correct Answer:
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