Stopher Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

Multiple Choice

Stopher 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 machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

A) $1.67 per machine-hour
B) $1.81 per machine-hour
C) $1.76 per machine-hour
D) $1.19 per machine-hour