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.The standard fixed overhead application rate for the Machining Department 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.The standard fixed overhead application rate for the Machining Department 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.The standard fixed overhead application rate for the Machining Department 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