What is the budgeted variable overhead cost rate per output unit?

ACCOUNTING

Multiple Choice

In flexible budgets, costs that remain the same regardless of the output levels within the relevant Shimon Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data.



Budgeted output units 15,000 units

Budgeted machine-hours 5,000 hours

Budgeted variable manufacturing overhead costs for 15,000 units $161,250



Actual output units produced 22,000 units

Actual machine-hours used 7,200 hours

Actual variable manufacturing overhead costs $242,000



What is the budgeted variable overhead cost rate per output unit?

a. $10.75

b. $11.00

c. $32.25

d. $48.40

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