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Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per...

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Accounting

Oldham Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, the fixed component in the predetermined overhead rate would be:

A.) $25.42

B.) $4.00

C.) $21.42

D.) $400.00

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