Question

Home Plate Corporation manufactures baseball uniforms and uses budgeted​ machine-hours to allocate variable manufacturing overhead. The following information pertains to the​ company's manufacturing overhead​ data: Budgeted output units ​7,000 units Budgeted​ machine-hours ​19,000 hours Budgeted variable manufacturing overhead costs for​ 7,000 units ​$119,000 Actual output units produced ​6,000 units Actual​ machine-hours used ​18,000 hours Actual variable manufacturing overhead costs ​$108,000 What is the budgeted variable overhead cost rate per output​ unit?

Answer 1

Answer:

$17

Explanation:

The computation of the budgeted variable overhead cost rate per output​ unit is shown below;

= Budgeted variable manufacturing  cost  ÷ Budgeted output

= 119,000 ÷ 7,000 units

= $17

We simply applied the above formula so that the budgeted variable overhead cost rate per output​ could come