8) 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 units800 truckloadsBudgeted fleet hours520 hoursBudgeted pounds of fertilizer28,000,000 poundsBudgeted variable manufacturing overhead costs for 800 loads$93,600.00Actual output units produced and delivered760 truckloadsActual fleet hours460 hoursActual pounds of fertilizer produced and delivered29,400,000 poundsActual variable manufacturing overhead costs$91,200.00What is the budgeted variable overhead cost rate per output unit?
Diff: 2Objective: 2AACSB: Application of knowledge9) Standard costing is a costing system that allocates overhead costs on the basis of the standard overhead-cost rates times the standard quantities of the allocation bases allowed for the actual outputs produced.
Diff: 1Objective: 2AACSB: Analytical thinking10) Fixed costs automatically increase or decrease with the level of activity within a relevant range of activity.
Diff: 1Objective: 2AACSB: Analytical thinking