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Recht Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

Question 173

Multiple Choice

Recht Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.30 per machine-hour and fixed manufacturing overhead cost of $17,940 per period.If the denominator level of activity is 1,200 machine-hours,the fixed element in the predetermined overhead rate would be:


A) $14.95
B) $930.00
C) $24.25
D) $9.30

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