SB Patel and Sons The following information applies to the questions displayed below Patel and Sons, Inc., uses a standard cost system to apply overhead costs to units produced. Practical capacity for the plant is defined as 50.000 machine hours per year which represents 25.000 units of output Annual budgeted fixed overhead costs are $250000 and the budgeted variable overhead cost rate is $4 per unit Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20.000 units which took 41.000 machine hours Actual fxed overhead costs for the year amounted to $245,000 white the actual variable overnead cost per unit was $3.90 References 3