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) $19.70 (b) $24.90 (c) $28.60 (d) None of the above. 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 4,000 units 5,000 units Direct materials $45.50 per unit $45.50 per unit Direct labour $44.90 per unit $44.90 per unit Manufacturing overhead $131.50 per unit $108.50 per unit 2 The best estimate of the total variable manufacturing cost per unit is: (a) $45.50 $90.40 $106.9 None of the above. (d)