Christine 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: $\begin{array}{lr}
\text { Budgeted output units } & 10,000 \text { units } \
\text { Budgeted machine-hours } & 15,000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 20,000 \text { units } & \$ 180,000 \
& \
\text { Actual output units produced } & 9,000 \text { units } \
\text { Actual machine-hours used } & 14,000 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 171,000
\end{array}$ What is the budgeted variable overhead cost rate per output unit?

Question

Quizplus · Accepted Answer

The budgeted variable overhead cost rate per output unit is calculated by dividing the budgeted variable manufacturing overhead costs for 20,000 units by the budgeted output units (20,000 units). So, $180,000 / 10,000 units = $18.00 per unit.

Christine Corporation Manufactures Baseball Uniforms and Uses Budgeted Machine-Hours to Allocate