Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead.
Willis Corporation manufactures industrial-sized gas furnaces and uses
budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company’s manufacturing overhead data:
Budgeted output units 30,000 units
Budgeted machine-hours 10,000 hours
Budgeted variable manufacturing overhead costs for 30,000 units $324,000
Actual output units produced 44,000 units
Actual machine-hours used 14,400 hours
Actual variable manufacturing overhead costs $484,000
What is the budgeted variable overhead cost rate per output unit?
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