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Hairr Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

Question 87

Multiple Choice

Hairr Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $9.50 per machine-hour and fixed manufacturing overhead cost of $947,672 per period. If the denominator level of activity is 8,900 machine-hours, the predetermined overhead rate would be:


A) $9.50
B) $115.98
C) $106.48
D) $950.00

Correct Answer:

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