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Compute budget variable overhead cost rate per output unit

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Reference no: EM132507980

Point 1: Delicious Dishes Company is developing the budgeted variable overhead cost-alloction rates for the next twelve months. DDC's operating managers select machine-hours as the cost allocation base. Based on past performance, the operating managers estimated that it takes 0.70 machine hours per actual output unit. For 2013, the budgeted output is 167,000 dish sets, DDC budgets 60,000 (0.70*167,000) machine hours. All of DDCs variable overhead costs are budgeted in a pool and estimated to be $1,950,000 for 2013.

Question 1: Compute the budgeted variable overhead cost rate per output unit.

Reference no: EM132507980

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