Question

Pinnacle Corp. budgeted $266,990 of overhead cost for the current year. Actual overhead costs for the year were $238,930. Pinnacle's plantwide aliocation base, machine hours, was budgeted at 49,180 hours. Actual machine hours were 53,450. A total of 93,660 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plant wide factory overhead rate for the current year is:

a. 34.85 per machine hour
b. 52.85 per machine hour
c. 52.55 per machine hour
d. 55.43 per machine hour

Answer 1

The Pinnacle Corp's plant wide factory overhead rate is calculated by dividing the budgeted overhead cost by the budgeted machine hours. The given numbers result in an overhead rate of $5.43 per machine hour, which does not match any of the answer options provided in the question.

Step-by-step explanation:

The student is asking for the calculation of Pinnacle Corp's plant wide factory overhead rate for the current year. To calculate the overhead rate, we divide the total budgeted overhead costs by the total budgeted machine hours. In the given scenario, Pinnacle Corp. budgeted $266,990 of overhead cost and budgeted for 49,180 machine hours.

The overhead rate is calculated as follows:
Overhead Rate = Total Budgeted Overhead Costs / Total Budgeted Machine Hours
Overhead Rate = $266,990 / 49,180 hours
Overhead Rate = $5.43 per machine hour.

However, there seems to be a mismatch, as none of the provided options match this calculation. It's important to ensure that the numbers match the answer choices given in the question or to re-evaluate the figures provided for accuracy.