Rockies Company had the following information: $$\begin{array} { l r }
\text { Budgeted factory overhead } & \$ 90,000 \
\text { Actual factory overhead } & \$ 80,000 \
\text { Budgeted: Production setups } & 12,000 \
\text { Actual: Production setups } & 11,500
\end{array}$$ The budgeted factory-overhead rate using production setups as the cost driver is _____.
A)$6.25
B)$6.52
C)$6.78
D)$7.50

Question

Rockies Company had the following information: $$\begin{array} { l r } 
\text { Budgeted factory overhead } & \$ 90,000 \
\text { Actual factory overhead } & \$ 80,000 \
\text { Budgeted: Production setups } & 12,000 \
\text { Actual: Production setups } & 11,500
\end{array}$$ The budgeted factory-overhead rate using production setups as the cost driver is _____.
A)$6.25
B)$6.52
C)$6.78
D)$7.50

Quizplus · Accepted Answer

The budgeted factory-overhead rate using production setups as the cost driver is calculated by dividing the budgeted factory overhead by the budgeted production setups. So, $90,000 / 12,000 = $7.50.

Rockies Company Had the Following Information The Budgeted Factory-Overhead Rate Using Production Setups as the Cost