Pohl Corporation Uses a Standard Cost System in Which Manufacturing

Multiple Choice

Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: During June, 17,000 machine-hours were used to complete 13,000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The total predetermined overhead rate per machine-hour for June was:

A) $2.57 per machine-hour
B) $1.30 per machine-hour
C) $2.80 per machine-hour
D) $3.15 per machine-hour