Question

MC Qu. 150 Glaston Company manufactures... Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 184,000 in October, 192,500 in November, and 189,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $141,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.

Answer 1

Answer:

$288,200

Explanation:

Computation for the total budgeted overhead that would appear on the factory overhead budget for month of October.

Using this formula

Total budgeted overhead=(Units expected to be produced*Variable overhead rate)+Fixed overhead

Let plug in the formula

Total budgeted overhead=(184,000 * $0.80) + $141,000

Total budgeted overhead=$147,200+$141,000

Total budgeted overhead = $288,200

Therefore the total budgeted overhead that would appear on the factory overhead budget for month of October is $288,200