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Bakos Corporation's abbreviated flexible budget

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Question 18: (1 point)
Bakos Corporation's abbreviated flexible budget for two levels of activity appears below:

Cost Formula (per machine-hour) Activity
(in machine-hours)
2,900 3,000
Total variable overhead cost $8.7 $ 25,230 $ 26,100
Total fixed overhead cost 102,100 102,100
Total overhead cost $127,330 $128,200

If the denominator level of activity is 2,900 machine-hours, the variable element in the predetermined overhead rate would be:

$9.9
$7.9
$9.4
$8.7

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This solution is comprised of a detailed explanation to answer how much is the variable element in the predetermined overhead rate.

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Question 18: (1 point)
Bakos Corporation's abbreviated flexible budget for two levels of activity appears below:

Cost ...

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