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4 May, 02:58

Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budgeted at 100,000 hours. Budgeted units to be produced are 200,000 units. Zorn's plantwide factory overhead rate is $6.00 per unit. A) TrueB) False

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  1. 4 May, 05:10
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    False

    Explanation:

    Budgeted of factory overhead cost = $600,000

    Budgeted machine hours = 100,000 hours

    Budgeted units to be produced = 200,000 units

    Zorn's plantwide factory overhead rate:

    = Budgeted of factory overhead cost : Budgeted units to be produced

    = $600,000 : 200,000

    = $3 per unit

    Therefore, the answer given in question is false.
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Home » Business » Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budgeted at 100,000 hours. Budgeted units to be produced are 200,000 units. Zorn's plantwide factory overhead rate is $6.
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