Green Energy Inc.produces fertilizer and distributes the product by using his tanker trucks.Green Energy uses budgeted fleet hours to allocate variable manufacturing overhead.The following information relates to the company's manufacturing overhead data: $\begin{array}{lr}
\text { Budgeted output units } & 730 \text { truckloads } \
\text { Budgeted fleet hours } & 511 \text { hours } \
\text { Budgeted pounds of fertilizer } & 24,000,000 \text { pounds } \
\text { Budgeted variable manufacturing overhead costs for } 730 \text { loads } & \$ 89,425 \
& 720 \text { truckloads } \
\text { Actual output units produced and delivered } & 436 \text { hours } \
\text { Actual fleet hours } & 25,200,000 \text { pounds } \
\text { Actual pounds of fertilizer produced and delivered } & \$ 87,120
\end{array}$ 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 by the budgeted output units: $89,425 / 730 truckloads = $122.50 per truckload.

Green Energy Inc What Is the Budgeted Variable Overhead Cost Rate Per Output