Answer the Following Questions Using the Information Below:
Fearless Frank's

question 130

Multiple Choice

Answer the following questions using the information below:
Fearless Frank's Fertiliser Farm produces fertiliser and distributes the product by using his tanker trucks.Frank's uses budgeted fleet hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$\begin{array}{lr}\text { Budgeted output urits } & 450 \text { truckloads } \\\text { Budgeted fleet hours } & 350 \text { hours } \\\text { Budgeted kilos of fertiliser } & 12000000 \text { kilos } \\\text { Budgeted variable manufacturing overhead costs for } 450 \text { loads } & \$ 50000\\\\\text { Actual output units produced and delivered } & 470 \text { truckloads } \\\text { Actual fleet hours } & 327 \text { hours } \\\text { Actual kilos of fertiliser produced and delivered } & 12600000 \text { kilos } \\\text { Actual variable manufacturing overhead costs } & \$ 52250\end{array}$
-What is the budgeted variable overhead cost rate per output unit?

• A)$120.00
• B)$111.11
• C)$175.00
• D)$166.67

---

Definitions:

Labor

The physical and mental exertion of humans utilized in creating goods and services.

Leisure

Free time when one is not working or attending to other duties.

Output Price

The price at which a product or service is sold in the market.

Demand for Labor

The quantity of workers that employers are willing and able to hire at different wage levels in a given time period, reflecting the need for labor in producing goods and services.