Muscato Corporation estimates that its variable manufacturing overhead is $18.20 per machine-hour and its fixed manufacturing overhead is $1,423,760 per period.

If the denominator level of activity is 7,400 machine-hours, the fixed component in the predetermined overhead rate would be:

Multiple Choice

• $192.40 per machine-hour

• $210.60 per machine-hour

• $18.20 per machine-hour

• $1,820.00 per machine-hour