north company budgets overhead costs for the next year of $3,500,000 for indirect labor and $940,000 for…

north company budgets overhead costs for the next year of $3,500,000 for indirect labor and $940,000 for factory utilities. the company uses machine hours as its overhead allocation base. if 100,000 machine hours are planned for this next year, what is the companys plantwide overhead rate?\nmultiple choice\n$0.0225 per machine hour.\n$35.00 per machine hour.\n$44.40 per machine hour.\n$9.40 per machine hour.\n$0.1064 per machine hour.

north company budgets overhead costs for the next year of $3,500,000 for indirect labor and $940,000 for factory utilities. the company uses machine hours as its overhead allocation base. if 100,000 machine hours are planned for this next year, what is the companys plantwide overhead rate?\nmultiple choice\n$0.0225 per machine hour.\n$35.00 per machine hour.\n$44.40 per machine hour.\n$9.40 per machine hour.\n$0.1064 per machine hour.

Answer

Explanation:

Step1: Calculate total overhead costs

$3500000 + 940000=4440000$

Step2: Calculate plant - wide overhead rate

$\frac{4440000}{100000}=44.40$

Answer:

C. $44.40 per machine hour