Regal Company uses a single cost pool for fixed manufacturing overhead. The amount for June 2012 was budgeted at $500,000; however, the actual amount was $700,000. Actual production for June was 12,500 units, and actual machine hours were 10,000. Budgeted production included 17,750 units and 12,375 machine hours. What is the budgeted fixed overhead rate per output unit?
A) $28.17 per unit
B) $39.44 per unit
C) $40.40 per unit
D) $56.56 per unit
E) $65.17 per unit

Question

Quizplus · Accepted Answer

The budgeted fixed overhead rate per output unit is $28.17. This is calculated by dividing the budgeted fixed overhead cost of $500,000 by the budgeted production of 17,750 units.

Regal Company Uses a Single Cost Pool for Fixed Manufacturing