Question 29

The predetermined overhead rate (variable and fixed) is $7.50 per machine hour, and the denominator activity level is 135,000 machine hours. If the variable portion of the predetermined overhead rate is $3.00 per machine hour, what is the budgeted fixed factory overhead for the year?

Question 29 options:

A)

$607,500.

B)

$30,000.

C)

$405,000.

D)

$1,012,500.