Atlas Cable Company has a total variable overhead cost at $3,200,000;operational management has estimated that one actual output unit takes 0.5 machine hours.The 80,000 machine hours have been budgeted for the year 2013.
Required
Compute the budgeted variable overhead cost rate per output unit.

Question

Quizplus · Accepted Answer

C)$3,200,000 = $40 per machine hour
80,000
0.50 machine hours × $40 per machine hour = $20 per cable unit

Atlas Cable Company Has a Total Variable Overhead Cost at $3,200,000;operational