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Bob's Biscuit Corporation budgeted $1,200,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budgeted at 100,000 hours. Budgeted units to be produced are 200,000 units. Bob's plantwide factory overhead rate is $12 per machine hour. True False

Respuesta :

Zviko

Answer:

True

Explanation:

The Plantwide Factory overhead rate is the Absorption rate calculated from the total Factory`s Overheads and Total Factory Cost Driver.

The plantwide allocation base or Cost Driver for Bob's Biscuit Corporation is machine hours.

Thus the Overheads Rate is Calculated as Follows:

=Total Budgeted Overhead / Total Budgeted Activity

=$1,200,000/ 100,000 machine hours

=$ 12.00 per machine hours

TomShelby

Answer:

the statement is TRUE

Explanation:

[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]

THe overhead rate is the expected overhread over the expected cost dirve, in his case, machine hours but it could be labor cost, labor hour or other.

$1,200,000 overhead / 100,000 machine hours = $12 overhead per machine hour

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