For 2018, Franklin Manufacturing Uses Machine-Hours as the Only Overhead

question 184

Multiple Choice

For 2018, Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base. The estimated manufacturing overhead costs are $300,000 and estimated machine hours are 50,000. The actual manufacturing overhead costs are $420,000 and actual machine hours are 60,000.
Using job costing, the 2018 budgeted manufacturing overhead rate is ________. (Round the final answer to the nearest cent.)

• A) $8.40 per machine-hour
• B) $5.00 per machine-hour
• C) $7.00 per machine-hour
• D) $6.00 per machine-hour