Compute the budgeted manufacturing overhead rate

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Question - For answering the following questions use the information below:

For 2019, Tiger's Animal Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

 

Estimated

Actual

Manufacturing overhead

100,000

120,000

Machine-Hours

20,000

25,000

Using job costing, compute the 2019 budgeted manufacturing overhead rate?

a. $4.00 per machine-hour

b. $4.80 per machine-hour

c. $5.00 per machine-hour

d. $6.00 per machine-hour

Reference no: EM132663036

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