When a company comes up with a standard rate per unit for variable overhead, it should equal the variable portion of the predetermined overhead rate.
What should the variable overhead equal?
The predetermined overhead rate is divided into a fixed and variable portion to cater for the different types of costs there are.
The standard rate per unit for the variable overhead should therefore be equal to the variable part of that predetermined overhead rate.
Find out more on the predetermined overhead rate at https://brainly.com/question/26372929.
