Vertex Electronics allocates manufacturing overhead based on machine hours. Each device requires 10 machine hours. According to the static budget, Vertex expected to incur the following: 1. 600 machine hours per month (devices * 10 machine hours per device). 2. $7,500 in variable manufacturing overhead costs. 3. $12,000 in fixed manufacturing overhead costs. During October, Vertex actually used 550 machine hours to make 150 devices, and spent $6,800 in variable manufacturing costs and $12,500 in fixed manufacturing overhead costs. What is the standard variable manufacturing overhead allocation rate for Vertex Electronics?

Vertex Electronics allocates manufacturing overhead based on machine hours. Each device requires 10 machine hours. According to the static budget, Vertex expected to incur the following: 1. 600 machine hours per month (devices * 10 machine hours per device). 2. $7,500 in variable manufacturing overhead costs. 3. $12,000 in fixed manufacturing overhead costs. During October, Vertex actually used 550 machine hours to make 150 devices, and spent $6,800 in variable manufacturing costs and $12,500 in fixed manufacturing overhead costs. What is the standard variable manufacturing overhead allocation rate for Vertex Electronics?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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