Kingdon Corporation has provided its flexible budget for two levels of activity:

Determine the predetermined overhead rate for the denominator level of activity of 4,600 machine-hours. Show your work!

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Variable overhead costs: Supplies Wearing tools Total variable overhead cost.. Fixed overhead costs: Salaries Occupancy costs. Total fixed overhead cost. Total overhead cost... Cost Formula (per machine- hour) $2.50 4.60 $7.10 Activity (in machine- hours) 4,500 $ 11,250 20,700 31,950 4,600 $ 11,500 21,160 32,660 72,450 72,450 134,550 134,550 207,000 207,000 $238,950 $239,660 Variable overhead costs: Supplies Wearing tools Total variable overhead cost.. Fixed overhead costs: Salaries Occupancy costs. Total fixed overhead cost. Total overhead cost... Cost Formula (per machine- hour) $2.50 4.60 $7.10 Activity (in machine- hours) 4,500 $ 11,250 20,700 31,950 4,600 $ 11,500 21,160 32,660 72,450 72,450 134,550 134,550 207,000 207,000 $238,950 $239,660

Answer rating: 100% (QA)

Activity Hours 4600 T... View the full answer