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Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead.
Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units 300 truckloads Budgeted fleet hours 225 hours Budgeted pounds of fertilizer 12,000,000 pounds Budgeted variable manufacturing overhead costs for 300 loads S37,500 Actual output units produced and delivered Actual fleet hours Actual pounds of fertilizer produced and delivered Actual variable manufacturing overhead costs 315 truckloads 218 hours 12,600,000 pounds $38,250 for Variable-manufacturing overhead costs were actual output. O Higher than expected The same as expected O Indeterminable O Lower than expected
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