If budgeted machine-hours allowed per actual output unit equals 1.0 hour, and budgeted variable manufacturing overhead per machine-hour is $200, what is the budgeted variable manufacturing overhead rate per output unit?
A)$100
B)$200
C)$300
D)$400
E)$500

Question

Quizplus · Accepted Answer

If budgeted machine-hours allowed per actual output unit equals 1.0 hour, and budgeted variable manufacturing overhead per machine-hour is $200, then the budgeted variable manufacturing overhead rate per output unit would be $200 since there is only 1 hour allowed per output unit.

If Budgeted Machine-Hours Allowed Per Actual Output Unit Equals 1