(Appendix 10A) Fredin Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
-The fixed component of the predetermined overhead rate is closest to:
A) $16.73 per labor-hour
B) $6.19 per labor-hour
C) $8.36 per labor-hour
D) $12.38 per labor-hour
Correct Answer:
Verified
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