(Appendix 10A) Stopyra Incorporated Makes a Single Product--A Cooling Coil

Multiple Choice

(Appendix 10A) Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-If the denominator level of activity is 7,500 machine-hours,the fixed component in the predetermined overhead rate would be:

A) $192.28 per machine-hour
B) $211.28 per machine-hour
C) $19.00 per machine-hour
D) $1,900.00 per machine-hour