Question

Flagstaff Company has budgeted production units for July of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed factory overhead is $19,000, which includes $3,000 of factory equipment depreciation. Compute the total budgeted overhead to be reported on the factory overhead budget for the month.

Answer 1

total budgeted overhead is $28480

Step-by-step explanation:

Given data

production = 7900 units

overhead = $1.20 per unit

fixed factory overhead = $19,000

to find out

total budgeted overhead

solution

total budgeted overhead will be calculated by this formula i.e

total budgeted overhead is = variable factory overhead and + fixed factory overhead .......................1

variable factory overhead = production × overhead per unit

variable factory overhead = 7900 × 1.20

variable factory overhead = 9480

put all value equation in 1 we get

total budgeted overhead is = 9480 + 19000

total budgeted overhead is $28480