Regal Company Uses a Single Cost Pool for Fixed Manufacturing

question 110

Multiple Choice

Regal Company uses a single cost pool for fixed manufacturing overhead. The amount for June 2012 was budgeted at $500,000; however, the actual amount was $700,000. Actual production for June was 12,500 units, and actual machine hours were 10,000. Budgeted production included 17,750 units and 12,375 machine hours. What is the budgeted fixed overhead rate per output unit?

• A) $28.17 per unit
• B) $39.44 per unit
• C) $40.40 per unit
• D) $56.56 per unit
• E) $65.17 per unit

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