Tantanka Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. The following information relates to production for last year: Variable FixedTotal budgeted overhead (at denominator level of activity)$432,000 $684,000Total applied overhead$410,400 $649,800Total actual overhead$456,000 $655,500?The standard machine-hours allowed for actual output during the year were 7,600. The actual machine-hours incurred were 7,500.?What did Tantanka use as a predetermined overhead rate for fixed manufacturing overhead?
A. $87.40 per machine-hour
B. $90.00 per machine-hour
C. $85.50 per machine-hour
D. $86.64 per machine-hour
Answer: C
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