The following budget data pertain to the Machining Department of Yolkenverst Co.:The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production (outputs).
The standard fixed overhead application rate for the Machining Department (to two decimal places) is:
A) $2.89 per machine hour.
B) $3.40 per machine hour.
C) $3.47 per machine hour.
D) $4.08 per machine hour.
E) $8.50 per machine hour.

Question

The following budget data pertain to the Machining Department of Yolkenverst Co.:The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production (outputs).
The standard fixed overhead application rate for the Machining Department (to two decimal places) is:
A) $2.89 per machine hour. 
B) $3.40 per machine hour. 
C) $3.47 per machine hour. 
D) $4.08 per machine hour. 
E) $8.50 per machine hour.

Quizplus · Accepted Answer

The Answer of The following budget data pertain to the Machining Department of Yolkenverst Co.:The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production (outputs).
The standard fixed overhead application rate for the Machining Department (to two decimal places) is:
A) $2.89 per machine hour. 
B) $3.40 per machine hour. 
C) $3.47 per machine hour. 
D) $4.08 per machine hour. 
E) $8.50 per machine hour.

The Following Budget Data Pertain to the Machining Department of Yolkenverst