Pinnacle corp. budgeted $700,000 of overhead cost for the current year. actual overhead costs for the year were $650,000. pinnacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. actual machine hours were 80,000. a total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. pinnacle's plantwide factory overhead rate for the current year is?

Overhead Rate for current year=$7 per machine hour

Step-by-step explanation:

Overhead Cost=$700000

Machine Hours Budgeted=100000

In order to calculate the Pinnacle's factory overhead rate for the current year we will consider the following formula:

Overhead rate for the current year=Budgeted overhead cost for the current year/Machne hours budgeted

Overhead Rate for current year=$7

So Pinnacle plantwide factory overhead rate for the current year is $7 per machine hour.