FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual
overhead costs for the year were $213,870. Pinnacle's plantwide allocation base,
machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A
total of 102,150 units was budgeted to be produced and 98,000 units were actually
produced. Pinnacle's plantwide factory overhead rate for the current year is:
Oa. $4.12 per machine hour
Ob. $4.36 per machine hour
Oc. $2.22 per machine hour
Od. $2.09 per machine hour
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Transcribed Image Text:Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual overhead costs for the year were $213,870. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A total of 102,150 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.12 per machine hour Ob. $4.36 per machine hour Oc. $2.22 per machine hour Od. $2.09 per machine hour
Expert Solution
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Step 1

Given, 

Budgeted overhead cost = $226,340

Actual overhead cost = $213,870

Budgeted machine hours = 51,960 hours

Actual machine hours = 53,550 hours

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