Use the information below to answer the following question(s).Regal Company uses a single cost pool for fixed manufacturing overhead.The amount for June 2019 was budgeted at $500,000; however, the actual amount was $700,000.Actual production for June was 12,500 units, and actual machine hours were 10,000.Budgeted production included 17,750 units and 12,375 machine hours.
-What is Regal Company's budgeted fixed overhead rate per machine hour?
A)$28.17 per machine hour
B)$39.44 per machine hour
C)$40.40 per machine hour
D)$56.56 per machine hour
E)$65.17 per machine hour

Question

Quizplus · Accepted Answer

The budgeted fixed overhead rate per machine hour can be calculated using the following formula:

Budgeted Fixed Overhead Rate = Budgeted Fixed Manufacturing Overhead / Budgeted Machine Hours

From the information provided:

Budgeted Fixed Manufacturing Overhead = $500,000
Budgeted Machine Hours = 12,375

Therefore, the budgeted fixed overhead rate per machine hour would be:

$500,000 / 12,375 = $40.40 per machine hour

Use the Information Below to Answer the Following Question(s)