Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation.
Refer to Sullivan Company. If the budgeted production for April is 6,000 units, then the total budgeted factory overhead for April is:
A. |
$82,000 |
|
B. |
$93,000 |
|
C. |
$85,000 |
|
D. |
$77,000 |
B. |
$93,000 |
Working:
Budgeted Factory Overhead: | ||||||||||||
Variable Overhead | 6,000 | x | $ 3.00 | = | $ 18,000 | |||||||
Fixed Overhead | $ 75,000 | |||||||||||
Total Budgeted Factory Overhead | $ 93,000 | |||||||||||
Note:Factory Deprication is part of budgeted factory overhead.However,Office depreciation is not included in factory overhead. | ||||||||||||
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