Tillinghast Corporation estimates that its variable manufacturing overhead is $9.60 per machine-hour and its fixed manufacturing overhead is $14,630 per period. If the denominator level of activity is 1,000 machine-hours, the variable component in the predetermined overhead rate would be:
A)$22.90 per machine-hour
B)$14.63 per machine-hour
C)$24.23 per machine-hour
D)$9.60 per machine-hour

Question

Quizplus · Accepted Answer

The variable component in the predetermined overhead rate is simply the variable manufacturing overhead per machine-hour, which is $9.60.

Tillinghast Corporation Estimates That Its Variable Manufacturing Overhead Is $9