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predetermined fixed overhead rate

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A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator level of activity 8,800 MHs
Fixed overhead cost $72,248

The following data pertain to operations for the most recent period:

Actual hours 8,560 MHs
Standard hours allowed for the actual output 8,576 MHs
Actual total fixed overhead cost $72,470

What is the predetermined fixed overhead rate to the nearest cent?

$8.21

$9.44

$8.91

$8.74

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A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data ...

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