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Keeran Corporation Estimates That Its Variable Manufacturing Overhead Is $5

Question 31

Multiple Choice

Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period. If the denominator level of activity is 6,200 machine-hours, the predetermined overhead rate would be:


A) $520.00 per machine-hour
B) $5.20 per machine-hour
C) $44.24 per machine-hour
D) $39.04 per machine-hour

Correct Answer:

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