The variable component of the predetermined overhead rate is closest to:

A) $0.44 per machine-hour
B) $1.29 per machine-hour
C) $0.33 per machine-hour
D) $0.76 per machine-hour

Predetermined Overhead Rate

A rate calculated before a period begins, used to assign overhead costs to products or job orders based on a certain activity, such as machine hours or labor hours.

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.