Pinacle Corp. budgeted $246,570 of overhead cost for 2012. Actual overhead costs
ID: 2482246 • Letter: P
Question
Pinacle Corp. budgeted $246,570 of overhead cost for 2012. Actual overhead costs for the year were $200,240. Pinacle's plantwide allocation base, machine hours, was budgeted at 50,926 hours. Actual machine hours were 47,250. A total of 109,100 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for 2012 is: Round to the nearest cent. Select the correct answer. $3.93 per machine hour $2.26 per machine hour $1.84 per machine hour $4.84 per machine hourExplanation / Answer
Calculation of Plant wide factory overhead rate for 2012:
Formula :
Plant wide factory overhead rate = Total Budgeted Overhead cost / Total Budgeted Machine hours
= $246570 / 50920 Hours =
$ 4.84
per machine hour
Calculation of Plant wide factory overhead rate for 2012:
Formula :
Plant wide factory overhead rate = Total Budgeted Overhead cost / Total Budgeted Machine hours
= $246570 / 50920 Hours =
$ 4.84
per machine hour