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BLC has the following information with respect to variable manufacturing overhead for the month of...

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Accounting

BLC has the following information with respect to variable manufacturing overhead for the month of June. The budget calls for 10,000 units to be produced using a total of 15,000 machine-hours. The variable overhead costs for the period are budgeted to be $180,000. During June, the actual output was 9,000 units. The total variable overhead costs were $171,000, and 14,000 machine-hours were actually used. BLC uses machine-hours to drive variable overhead. What were the standard machine-hours allowed per unit of output?

1. 1.4

2. 1.5

3. 1.6

4. 1.7

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