Question

Flagstaff Company has budgeted July production 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 for July.

Answer 1

total budgeted overhead for July is $28480

Step-by-step explanation:

given data

production in July = 7900 unit

Variable factory overhead = $1.20 per unit

fixed factory overhead = $19,000

factory equipment depreciation = $3,000

to find out

Compute the total budgeted overhead for July

solution

we get here total budgeted overhead that is computed as

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

and here variable factory overhead is

variable factory overhead = production × overhead per unit ...........b

put here value we get

variable factory overhead = 7900 × 1.20

variable factory overhead = 9480

now

put all value equation in a we get

total budgeted overhead is = 9480 + 19000

total budgeted overhead for July is $28480