1 The manufacturing overhead budget at Formica Corporation is based on budgeted direct labour-hours. The direct labour budget indicates that 4,400 direct labour-hours will be required in October. The variable overhead rate is $8.90 per direct labour- hour. The company's budgeted fixed manufacturing overhead is $86,680 per month, which includes depreciation of $16,280. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The pre-determined overhead rate for October should be: (a) (b) $19.70 $24.90 $28.60 None of the above. (d) 2 Bakken Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume Direct materials Direct labour Manufacturing overhead 4,000 units $45.50 per unit $44.90 per unit $131.50 per unit 5,000 units $45.50 per unit $44.90 per unit $108.50 per unit The best estimate of the total variable manufacturing cost per unit is: (a) $45.50 $90.40 $106.9 None of the above. (d) 3 Reddy Company has the following cost formulas for overhead: Cost Indirect materials Maintenance Machine setup Utilities Depreciation Cost Formula $2,000 plus $0.40 per machine hour $1,500 plus $0.60 per machine hour $0.30 per machine hour $200 plus $0.10 per machine hour $800 Based on the cost formulas, the total overhead cost at 600 machine hours is expected to be: (a) (b) $4,500 $52,60 $5,340 None of the above. (d)