Majestic Corporation manufactures wheelbarrows and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacts overhead data: Budgeted output units Budgeted machine-hours Budgeted variable manufacturing overhead costs for 43,500 units 43,500 units 17,400 hours $382,800 Actual output units produced 47,500 units Actual machine-hours used Actual variable manufacturing overhead costs 15,100 hours $387,518 What is the amount of the budgeted variable manufacturing overhead cost per unit? (Do not found any intermediary calculations. Round your final answer to the nearest cent) OA 18.16 OB. $6.00 C. $8.91 OD. $8.80

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.