Author Question: Healthy Earth Products Inc. produces fertilizer and distributes the product by using company trucks. ... (Read 72 times)

Arii_bell · **on:** Mar 6, 2021

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?
◦ $114.00
◦ $117.00
◦ $123.16
◦ $120.00

jamesnevil303 · **Reply #1 on:** Mar 6, 2021

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