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Arslan Salikhov
on Oct 10, 2024

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If the denominator level of activity is 6,100 machine-hours, the fixed component in the predetermined overhead rate would be:

A) $520.00 per machine-hour
B) $39.68 per machine-hour
C) $5.20 per machine-hour
D) $44.88 per machine-hour

Denominator Level

A term used in cost accounting to describe the level at which fixed costs are allocated to units of production.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs.

  • Analyze how the level of activity in the denominator affects overhead rate determination.
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Senait GirmaOct 13, 2024
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