Question

WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company has forecast production for the next three months as follows: July 5,000 units, August 6,000 units, September 3,500 units. Monthly manufacturing overhead is budgeted to be $20,000 plus $5 per unit produced. What is budgeted manufacturing overhead for July

Answer 1

Based on the information the budgeted manufacturing overhead for July is $45,000.

WellWheats, Inc. Budgeted Manufacturing Overhead for the month of July

Monthly Manufacturing Overhead $20,000

Additional manufacturing costs            $25,000

(5,000 units x $5 per unit produced)  

Total Budgeted Manufacturing Overhead for July $45,000

($20,000+$45,000)

Inconclusion the budgeted manufacturing overhead for July is $45,000.

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