Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budgeted at 100,000 hours. Budgeted units to be produced are 200,000 units. Zorn's plantwide factory overhead rate is $6.00 per unit. A) TrueB) False

False

Explanation:

Budgeted of factory overhead cost = $600,000

Budgeted machine hours = 100,000 hours

Budgeted units to be produced = 200,000 units

Zorn's plantwide factory overhead rate:

= Budgeted of factory overhead cost : Budgeted units to be produced

= $600,000 : 200,000

= $3 per unit

Therefore, the answer given in question is false.