Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:

What is the amount of the budgeted variable manufacturing overhead cost per unit? (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

Question

Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:

What is the amount of the budgeted variable manufacturing overhead cost per unit? (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

Quizplus · Accepted Answer

Budgeted machine hours per unit = 17,400 ÷ 43,500 = 0.4
Budgeted variable overhead rate per machine hour = $382,800 ÷ 17,400 = $22.00
Budgeted variable manufacturing overhead cost per unit = 0.4 × $22.00 = $8.80

Majestic Corporation Manufactures Wheel Barrows and Uses Budgeted Machine Hours