What is budgeted variable overhead cost rate per output unit

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Reference no: EM132529061

Harvest Farms Inc. produces fertilizer and distributes the product by using company trucks. The controller of the company uses budgeted fleet hours to allocate variable manufacturing overhead.

The following information relates to the company's manufacturing overhead data:

Budgeted output units 800 truckloads

Budgeted fleet hours 520 hours

Budgeted pounds of fertilizer 28,000,000 pounds

Budgeted variable manufacturing overhead costs for 800 loads $93,600.00

Actual output units produced and delivered 760 truckloads

Actual fleet hours 460 hours

Actual pounds of fertilizer produced and delivered 29,400,000 pounds

Actual variable manufacturing overhead costs $91,200.00

Question 1 : What is the budgeted variable overhead cost rate per output unit?

Reference no: EM132529061

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