Question: Fuller Company allocates manufacturing overhead based on machine hours. Each bike produced should require 4 machine hours. According to the static budget, the following is

Fuller Company allocates manufacturing overhead based on machine hours. Each bike produced should require 4 machine hours. According to the static budget, the following is expected to incur:
2,200 machine hours per month (550 bikes x 4 hours per bike)
$11,440 in variable manufacturing overhead costs
$9,400 in fixed manufacturing overhead costs
During January, Fuller Company actually used 2,100 machine hours to make 510 bikes. The company spent $6,800 in variable manufacturing overhead costs and $9,100 in fixed manufacturing overhead costs.
What is the variable manufacturing overhead allocation rate (to the nearest cent)?
$5.00 per machine hour
$6.75 per machine hour
$4.83 per machine hour
$5.20 per machine hour
IDON'T KNOWYET
Fuller Company allocates manufacturing overhead

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