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 cost of variable MOH?

Answer 1

The total budgeted cost of variable MOH for Hathaway Computer Chip LLC is calculated by multiplying the budgeted variable MOH cost per unit ($0.15) by the budgeted units to be produced (4,000), resulting in a total of $600.

Step-by-step explanation:

To calculate the total budgeted cost of variable manufacturing overhead (MOH) for Hathaway Computer Chip LLC, you would need to multiply the budgeted variable MOH cost per unit by the budgeted units to be produced.

Budgeted variable MOH cost per unit: $0.15

Budgeted units to be produced: 4,000

Total budgeted variable MOH cost = Budgeted variable MOH cost per unit x Budgeted units to be produced

Total budgeted variable MOH cost = $0.15 x 4,000

Total budgeted variable MOH cost = $600

Therefore, the total budgeted cost of variable MOH for Hathaway Computer Chip LLC is $600.