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Taya2010 [7]
3 years ago
6

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 200,000 in October, 208,500 in November, and 205,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $157,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.
Business
1 answer:
dezoksy [38]3 years ago
4 0

Answer:

$ 317,000

Explanation:

Octuber Production:  200,000    

Variable Overhead:      $      0.80 per unit    

Fixed Overhead:        $ 157,000    

     

<u>Factory Overhead Budget for Octobe</u>r:      

   

Octuber Production x Variable Overhead =    <em>200,000 x 0.80 =  160,000</em>      

           

Variable Overhead:  <em>$ 160,000</em>

+  

Fixed Overhead:     <em>  </em><em><u>   $ 157,000</u></em><em> </em>  

     

Total Overhead:<em> </em>      <em>   </em><em>$ 317,000</em><em>    ( $ 160,000 + $ 157,000 )  </em>

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