Final answer:
The plant wide overhead rate is calculated by dividing the total estimated manufacturing overhead ($900,000) by the total machine-hours (30,000 hours), resulting in $30 per machine hour.
Step-by-step explanation:
The question is asking to calculate the plant wide overhead rate based on the estimated manufacturing overhead costs and the total machine-hours available. To find the overhead rate per machine hour, you simply divide the total estimated manufacturing overhead by the total number of machine-hours.
Using the information provided:
Total estimated manufacturing overhead = $900,000
Total machine-hours = 30,000 hours
Plant wide overhead rate = Total estimated manufacturing overhead / Total machine-hours
Plant wide overhead rate = $900,000 / 30,000 hours
Plant wide overhead rate = $30 per machine hour