The normal capacity of Yule Company is 5,00 . units per month. At this volume, budgeted fixed and variable factory overhead are $25,00 . and $20,000 . respectively. In December, actual production was 4,800 units and actual overhead incurred was $46,300. What is the factory overhead application rate at the actual level of production (rounded to the nearest penny)?
a. $9.00
b. $9.21
c. $8.80
d. $9.26
b
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