Question

Hathaway Computer Chip LLC is working on their MOH budget and have provided the following information: Budgeted units to be produced- 4,000, Budgeted variable MOH unit per unit= $0.15, the Budgeted portion of depreciation= $200, budgeted property taxes= $200, budgeted property insurance = $100. What is the total budgeted cash cost of MOH?

Answer 1

The total budgeted cash cost of MOH for Hathaway Computer Chip LLC is $1,100.

Step-by-step explanation:

To calculate the total budgeted cash cost of MOH, we need to consider the budgeted variable MOH per unit and the budgeted fixed MOH costs. The budgeted variable MOH per unit is $0.15, and the budgeted units to be produced are 4,000. So, the variable MOH cost is $0.15 multiplied by 4,000 which equals $600. The budgeted fixed MOH costs include depreciation ($200), property taxes ($200), and property insurance ($100), which sum up to $500. Therefore, the total budgeted cash cost of MOH is $600 + $500 = $1,100.