A Manufacturer of Industrial Equipment Has a Standard Costing System $( \mathrm { MHs } )$

Multiple Choice

A manufacturer of industrial equipment has a standard costing system based on machine hours $( \mathrm { MHs } )$ as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
$\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 39,00 \mathrm{MHs} \\\hline \text { Overhead Costs at the Denominator Activity Level: } & \\\hline \text { Variable Overhead Cost } & \$ 33,345 \\\hline \text { Fixed Overhead Cost } & \$ 61,425 \\\hline\end{array}$
The following data pertain to operations for the most recent period:
$\begin{array}{|r|r|}\hline \text { Actual Hours } & 3,900 \mathrm{MHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,952 \mathrm{MHs} \\\hline \text { Actual Total Variable Overhead Cost } & \$ 32,565 \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 60,675 \\\hline\end{array}$
-What was the total predetermined overhead rate,rounded to the nearest cent?

A) $23.59.
B) $23.91.
C) $23.98.
D) $24.30.