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For​ 2018, Franklin Manufacturing uses machineminushours as the only overhead costminusallocation base. The estimated manufacturing overhead costs are $ 360 comma 000 and estimated machine hours are 50 comma 000. The actual manufacturing overhead costs are $ 480 comma 000 and actual machine hours are 60 comma 000. Using job​ costing, the 2018 budgeted manufacturing overhead rate is​ ________. (Round the final answer to the nearest​ cent.)

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Answer:

The correct answer is $7.2 per machine hour.

Explanation:

According to the scenario, the given data are as follows:

Estimated manufacturing overhead costs = $360,000

Estimated machine hours = 50,000

So, we can calculate the budgeted manufacturing overhead rate by using following formula:

Budgeted manufacturing overhead rate = Estimated manufacturing overhead costs ÷ Estimated machine hours

By putting the value, we get

= $360,000 ÷ 50,000

= $7.2 per machine hour

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