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Predetermined overhead rate

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Question 19: (1 point)
Billa Corporation's abbreviated flexible budget for two levels of activity appears below:
Cost Formula (per machine-hour) Activity
(in machine-hours)
4,590 4,690
Total variable overhead cost $11.5 $ 52,785 $ 53,935
Total fixed overhead cost 347,800 347,800
Total overhead cost $400,585 $401,735

If the denominator level of activity is 4,690 machine-hours, the predetermined overhead rate would be:

$99.66

$77.66

$103.66

$85.66

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