Morisey Corporation Bases Its Predetermined Overhead Rate on Variable Manufacturing

Multiple Choice

Morisey Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $8.60 per machine-hour and fixed manufacturing overhead cost of $457,002 per period.If the denominator level of activity is 6,300 machine-hours,the predetermined overhead rate would be:

A) $81.14
B) $860.00
C) $72.54
D) $8.60