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Heersink Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

Question 46

Multiple Choice

Heersink Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.50 per machine-hour and fixed manufacturing overhead cost of $108,108 per period.If the denominator level of activity is 2,700 machine-hours,the fixed element in the predetermined overhead rate would be:


A) $1,050.00
B) $40.04
C) $10.50
D) $50.54

Correct Answer:

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