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Billa Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

Question 133

Multiple Choice

Billa Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $11.70 per machine-hour and fixed manufacturing overhead cost of $341,596 per period.If the denominator level of activity is 4,700 machine-hours,the predetermined overhead rate would be:


A) $11.70
B) $72.68
C) $84.38
D) $1,170.00

Correct Answer:

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