Wintersmith Corporation estimates that its variable manufacturing overhead is $11.60 per machine-hour and its fixed manufacturing overhead is $278,124 per period.
-If the denominator level of activity is 4,200 machine-hours, the variable element in the predetermined overhead rate would be:
A) $11.60
B) $66.22
C) $76.28
D) $77.82

Question

Quizplus · Accepted Answer

The variable element in the predetermined overhead rate is simply the variable manufacturing overhead cost per machine-hour, which is $11.60.

Wintersmith Corporation Estimates That Its Variable Manufacturing Overhead Is $11