The following data relates to Mangini Company's estimated amounts for next year. What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)
A) $200.00 per MH
B) $150.00 per MH
C) $160.00 per MH
D) $31.11 per MH
E) $5.14 per MH

Question

The following data relates to Mangini Company's estimated amounts for next year.  What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)
A) $200.00 per MH 
B) $150.00 per MH 
C) $160.00 per MH 
D) $31.11 per MH 
E) $5.14 per MH

Quizplus · Accepted Answer

To calculate the plantwide overhead rate, we add up all estimated overhead costs and divide them by the estimated total machine hours. Plantwide overhead rate = ($608,000 + $379,500 + $268,000) / (4,418 + 2,322 + 1,383) = $1,255,500 / 8,123 = $154.64 per MH. Rounded to two decimal places, the answer is C: $160.00 per MH.

The Following Data Relates to Mangini Company's Estimated Amounts for Next