Kiker Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead:   Budgeted variable manufacturing overhead$112,000 Budgeted fixed manufacturing overhead 311,920 Total budgeted manufacturing overhead$423,920     Budgeted production (a) 35,000unitsStandard hours per unit (b) 1.60machine-hoursBudgeted hours (a) × (b) 56,000machine-hours The predetermined overhead rate is closest to:

A. $15.32 per machine-hour
B. $12.11 per machine-hour
C. $9.57 per machine-hour
D. $7.57 per machine-hour


Answer: D

Business

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