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.

a. $25,480.
b. $19,000.
c. $23,900.
d. $28,480.
e. $9,480.

Answer 1

D = $28,480

Step-by-step explanation:

Variable factory overhead = $1.2 * 7900 units = $9480

Budgeted fixed factory overhead = $19000

Total budgeted overhead = $9480 + $19000

= $28,480