Lasso Corp. budgeted $250,000 of overhead cost for 2001. Actual overhead costs for the year were $240,000. Lasso's plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Lasso's plant-wide factory overhead rate for 2001 is:
A.	$1.25 per unit
B.	$6.00 per machine hour
C.	$6.25 per machine hour
D.	$5.00 per machine hour
Answer:D
Lasso Corp. budgeted $250,000 of overhead cost for 2001. Actual overhead costs for the year were $240,000. Lasso's plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Lasso's plant-wide factory overhead rate for 2001 is:
A.	$1.25 per unit B.	$6.00 per machine hour C.	$6.25 per machine hour D.	$5.00 per machine hour