Question

Our company manufactures a single product. The production budget indicates that the number of units expected to be produced are 193,000 in October, 201,500 in November, and 198,000 in December. We assign variable overhead at a rate of $0.75 per unit of production. Fixed overhead equals $150,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.

Answer 1

Budgeted overhead for the month of October = $294,750

Step-by-step explanation:

Provided information,

Number of units to be produced in the months

October = 193,000

November = 201,500

December = 198,000

We need to report the overheads for the month of October

Provided overhead rate = $0.75 per unit variable + $150,000 fixed overhead

For the month of October

Overheads shall be as follows;

Variable = $0.75
`*` 193,000 = $144,750

Fixed = $150,000

Total = $294,750