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Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period. If the denominator level

Keeran Corporation estimates that its variable manufacturing overhead is $5.20 per machine-hour and its fixed manufacturing overhead is $242,048 per period.

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

Multiple Choice

  • $5.20 per machine-hour

  • $44.24 per machine-hour

  • $44.88 per machine-hour

  • $39.68 per machine-hour

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