Favreau Corporation estimates that its variable manufacturing overhead is $6.10 per machine-hour and its fixed manufacturing overhead is $352,590 per period.
-If the denominator level of activity is 6,900 machine-hours,the fixed element in the predetermined overhead rate would be:
A)$610.00
B)$6.10
C)$57.20
D)$51.10

Question

Quizplus · Accepted Answer

Fixed element of the predetermined overhead rate = Estimated fixed overhead F1F1F1S1F1F1F10 Denominator level of activity
= $352,590 F1F1F1S1F1F1F10 6,900 machine-hours
= $51.10 per machine-hour

Favreau Corporation Estimates That Its Variable Manufacturing Overhead Is $6