The management of Pint Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to ustrate how this new system would work. In this example, the allocation base is machine hours and the estimated amount of the allocation base for the upcoming year is 69.000 machine-hours Capacity is 82,000 machine hours and the actual level of activity for the year is assumed to be 72.400 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $4,130.340 per year it is assumed that a number of jobs were worked on during the year, one of which was Job 020L which required 470 machine-hours If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the vicome statement prepared for internal management purposes? O Multiple Choice $654.810 $687,070 $547600 $43552 The management of Holdaway Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 79,000 machine-hours Capacity is 88,000 machine hours and the actual level of activity for the year is assumed to be 74,900 machine-hours All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $5,700,640 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to Multiple Choice $72.16 per machine-hour $70.38 per machine-hour $7611 per machine hour $64.7 per machine-hour