Pinnacle Corp. budgeted $264,760 of overhead cost for the current year. Actual overhead costs for the year were $214,170. Pinnacle's plantwide allocation base, machine hours, was budgeted at 50,840 hours. Actual machine hours were 40,770. A total of 102,440 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$4.21 per machine hour b.$2.58 per machine hour c.$5.21 per machine hour d.$2.09 per machine hour

Question

Business

Skyler Jacobs

30 January, 08:05

Pinnacle Corp. budgeted $264,760 of overhead cost for the current year. Actual overhead costs for the year were $214,170. Pinnacle's plantwide allocation base, machine hours, was budgeted at 50,840 hours. Actual machine hours were 40,770. A total of 102,440 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: a.$4.21 per machine hour b.$2.58 per machine hour c.$5.21 per machine hour d.$2.09 per machine hour

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Answers (1)

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Deven · Answer 1

The correct answer is C: $5.21

Explanation:

Giving the following information:

Pinnacle Corp. budgeted $264,760 of overhead cost for the current year. Pinnacle's plantwide allocation base, machine hours, was budgeted at 50,840 hours.

Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base = 264760/50840 = 5.21