Dodgers Company had the following information: $$\begin{array} { l r }
\text { Budgeted factory overhead } & \$ 90,000 \
\text { Actual factory overhead } & \$ 82,000 \
\text { Budgeted: Machine hours } & 40,000 \
\text { Actual: Machine hours } & 35,500
\end{array}$$ The budgeted factory-overhead rate using machine hours as the cost driver is _____.
A)$2.250
B)$2.025
C)$2.050
D)$2.875

Question

Dodgers Company had the following information: $$\begin{array} { l r } 
\text { Budgeted factory overhead } & \$ 90,000 \
\text { Actual factory overhead } & \$ 82,000 \
\text { Budgeted: Machine hours } & 40,000 \
\text { Actual: Machine hours } & 35,500
\end{array}$$ The budgeted factory-overhead rate using machine hours as the cost driver is _____.
A)$2.250
B)$2.025
C)$2.050
D)$2.875

Quizplus · Accepted Answer

The budgeted factory-overhead rate is calculated by dividing the budgeted factory overhead by the budgeted machine hours: $90,000 / 40,000 = $2.250.

Dodgers Company Had the Following Information The Budgeted Factory-Overhead Rate Using Machine Hours as the Cost