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goldfiish [28.3K]
3 years ago
9

Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of u

nits expected to be produced are 192,000 in October, 200,500 in November, and 197,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $149,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Business
1 answer:
Travka [436]3 years ago
6 0

Answer:

Budgeted overhead= $283,400

Explanation:

Giving the following information:

Production:

October= 192,000

variable overhead is applied at a rate of $0.70 per unit of production.

Fixed overhead equals $149,000 per month.

To calculate the budgeted overhead, we need to determine the total variable overhead for the month:

Budgeted overhead= fixed overhead + total variable overhead

Budgeted overhead= 149,000 + 0.7*192,000

Budgeted overhead= $283,400

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