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Birdstock establishes a static budget at the beginning of each year. Birdstock uses machine hours...

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Accounting

Birdstock establishes a static budget at the beginning of each year. Birdstock uses machine hours to allocate fixed overhead. Based on the static budget, the budgeted fixed overhead for the year totaled $1,644,000 and the budgeted machine hours totaled 411,000. For May, the actual fixed overhead was $150,000 and the actual machine hours were 15,000. What is the rate that Birdstock will use to apply overhead in May?

Select one:

a. $109.60 per machine hour

b. $4.00 per machine hour

c. None of the choices are correct.

d. $10.00 per machine hour

e. $0.25 per machine hour

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