Seroka Corporation estimates that its variable manufacturing overhead is $6.90 per machine-hour and its fixed manufacturing overhead is $745,290 per period.
-If the denominator level of activity is 9,100 machine-hours,the predetermined overhead rate would be:
A)$88.80
B)$690.00
C)$6.90
D)$81.90

Question

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead F1F1F1S1F1F1F10 Denominator level of activity
= ($745,290 + $6.90 per machine-hour F1F1F1S1F1F1F10 9,100 machine-hours)F1F1F1S1F1F1F10 9,100 machine-hours
= $808,080 F1F1F1S1F1F1F10 9,100 machine-hours
= $88.80 per machine-hour

Seroka Corporation Estimates That Its Variable Manufacturing Overhead Is $6