Question

Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 200,000 in October, 208,500 in November, and 205,000 in December. Glaston assigns variable overhead at a rate of $0.80 per unit of production. Fixed overhead equals $157,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.

Answer 1

$ 317,000

Step-by-step explanation:

Octuber Production: 200,000

Variable Overhead: $ 0.80 per unit

Fixed Overhead: $ 157,000

Factory Overhead Budget for October:

Octuber Production x Variable Overhead = 200,000 x 0.80 = 160,000

Variable Overhead: $ 160,000

+

Fixed Overhead: $ 157,000

Total Overhead: $ 317,000 ( $ 160,000 + $ 157,000 )