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? $\bold{\text{(Round your answer to two decimal places.)}}$
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? $\bold{\text{(Round your answer to two decimal places.)}}$
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

The plantwide overhead rate is calculated by dividing total estimated overhead costs by total estimated machine hours. Based on the given data, the total estimated overhead costs are $4,800,000 and the total estimated machine hours are 30,000. Therefore, the plantwide overhead rate is $4,800,000 / 30,000 = $160.00 per MH (rounded to two decimal places).

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