Question

Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit. Budgeted fixed factory overhead is $20,500, which includes $3,300 of factory equipment depreciation. Compute the total budgeted overhead for July.

Answer 1

Allocated MOH= $30,340

Step-by-step explanation:

Giving the following information:

Flagstaff Company has budgeted July production of 8,200 units. Variable factory overhead is $1.2 per unit.

Budgeted fixed factory overhead is $20,500

To calculate the allocated overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= (1.2*8,200) + 20,500

Allocated MOH= $30,340