please help with these two q\'s 1. 2. Pinacle Corp. budgeted $254,790 of overhea

Question

please help with these two q's

1.

2.

Pinacle Corp. budgeted $254,790 of overhead cost for the current year. Actual overhead costs for the year were $214,300. Pinacle's plantwide allocation base, machine hours, was budgeted at 53,590 hours. Actual machine hours were 49,060. A total of 103,410 units was budgeted to be produced and 98,000 units were actually produced. Pinacle's plantwide factory overhead rate for the current year is: Oa. $2.07 per machine hour Ob. $2.46 per machine hour c. $4.00 per machine hour Od. $4.75 per machine hour

Explanation / Answer

1)

Plant wide factory overhead rate = Total budgeted overheads/Budgeted machine hours

= $254,790/53,590

= $4.75

Hence, correct option is (d) $4.75 per machine hour

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