Baltimore Automotive Corp. has provides the following information for the year: Budgeted production for the year 20,000 units Estimated machine hours required 15,000 hours Estimated labor hours required 5,000 labor-hours Variable Overhead Costs $150,000 If Baltimore Automotive Corp. believes that machine-hours is the only cost driver of variable overhead, what will be the budgeted variable overhead cost rate per unit

Budgeted Variable overhead Cost rate per unit is $13.3

Explanation:

Variable overhead Costs is $150,000

Estimated Machine hours = 15,000 hours

We have to first derive the Cost rate Per hour of production

This will be: = (Variable overhead costs) $150,000 divided by (Machine Hours) 15,000 hrs

= $10 Per Machine Hour

This interprets as the for every machine hour spent on production we incur $10.

Subsequently, 20,000 units were produced with the entire 15,000 machine hours.

This implies, 1 machine hour will produce = (20,000units/15,000hrs) units = 1.33 units

Budgeted Variable overhead Cost rate per unit will now become = $10 per Machine Hour x 1.33 units per machine hour = $13.3/Unit of production

$10 per machine hour

Explanation:

the budgeted overhead cost rate per unit = estimated variable overhead expense / estimated total machine hours = $150,000 / 15,000 = $10 per machine hour

Variable overhead expenses include indirect manufacturing costs that vary according to different production levels and are assigned to the production processes based on a predetermined cost driver, e.g. supervisors' salaries, utilities assigned to specific machinery, etc.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; ///decision making under risk;