Baj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The

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3 years ago

7

Baj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The

company considers all of its manufacturing overhead costs to be fixed and it has provided the following data for the most recent year. Estimated total fixed manufacturing overhead from the beginning of the year $534,000 Estimated activity level from the beginning of the year 30,000 machine-hours Actual total fixed manufacturing overhead $487,000 Actual activity level 27,400 machine-hours The predetermined overhead rate per machine-hour would be closest to:________
a. $17.80
b. $19.49
c. $16.23
d. $17.77

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