The Following Budget Data Pertain to the Machining Department of Yolkenverst

Multiple Choice

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.