Baj Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. ?Estimated total fixed manufacturing overhead from thebeginning of the year$534,000 ?Estimated activity level from the beginning of the year 30,000machine-hours?Actual total fixed manufacturing overhead$487,000 ?Actual activity level 27,400machine-hours?The predetermined overhead rate per machine-hour would be closest to:
A. $19.49
B. $17.80
C. $17.77
D. $16.23
Answer: B
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