Question
Healthy Earth Products Inc. produces fertilizer and distributes the product by using company trucks. The controller of the company uses budgeted fleet hours to allocate
Healthy Earth Products 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
What is the budgeted variable overhead cost rate per output unit?
Please Show Work! Thanks
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