Simoneaux Corporation Bases Its Predetermined Overhead Rate on the Estimated

Multiple Choice

Simoneaux Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the machine-hours for the upcoming year at 22,000 machine-hours.The estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total fixed manufacturing overhead was $609,400.The predetermined overhead rate for the recently completed year was closest to:

A) $36.35 per machine-hour
B) $27.70 per machine-hour
C) $33.32 per machine-hour
D) $8.65 per machine-hour