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e. 75% At this sales level, fixed expenses are: A S 262,500 B. $ 12,500 Cs 87,500 D $ 700,000 E None of the above

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e. 75% At this sales level, fixed expenses are: A S 262,500 B. $ 12,500 Cs 87,500 D $ 700,000 E None of the above 400,000 sales - 300 000 vc 100,000 cu 75% of sales POL cu NI 100,000 x 100,000 8 12,500 11 Poole Company applies manufacturing overhead (MOH) using a pre-determined overhead rate (POHR) based on machine hours (MHs) with the following information for the period: MHs estimated for the period MHs actually incurred in the period POHR for the period Actual MOH for the period 250,000 258,000 $ 5.50 $1,410,000 per MH The activity for the period was significantly less than Poole's capacity of 275,000 MHs, and so the CEO has asked about the impact of using a POHR based on capacity. If this is done, how much lower will the company's applied MOH be versus the traditional method? POHR Est MOH Base A S 87,720 BS 129,000 C. $ 96,164 D. S 85,000 E None of the above 5.50 250,000 1375,000 Estimer

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