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 193,000 in October, 201,500 in November, and 198,000 in December. Glaston assigns variable overhead at a rate of $0.75 per unit of production. Fixed overhead equals $150,000 per month. Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.Group of answer choices$343,000.$150,000.$144,750.$301,125.$294,750.

Answer 1

Answer:

$294,750

Explanation:

The computation of the total budgeted overhead is shown below:

Particulars                   October         November December

Fixed overhead         $150,000       $150,000        $150,000

Number of units          193,000          201,500          198,000

Variable overhead          $144,750

                                  (193,000 units × $0.75)  

Total budgeted overhead $294,750

For computing the total budgeted overhead we simply fixed overhead and the variable overhead so that the total budgeted overhead could come