Odonell Corporation Estimates That Its Variable Manufacturing Overhead Is $11

Multiple Choice

Odonell Corporation estimates that its variable manufacturing overhead is $11.20 per machine-hour and its fixed manufacturing overhead is $563,640 per period. If the denominator level of activity is 6,000 machine-hours, the variable component in the predetermined overhead rate would be:

A) $93.94 per machine-hour
B) $11.20 per machine-hour
C) $105.14 per machine-hour
D) $103.60 per machine-hour