Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
Budgeted output units 31,000 units
Budgeted machine-hours 16,585 hours
Budgeted variable manufacturing overhead costs for 16,585 hours $348,285
Actual output units produced 33,000 units
Actual machine-hours used 14,400 hours
Actual variable manufacturing overhead costs $384,000
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