If the budgeted production for July is 6,000 units, then the total budgeted factory overhead for July is:

A) $85,000.
B) $77,000.
C) $82,000.
D) $93,000.

Question

If the budgeted production for July is 6,000 units, then the total budgeted factory overhead for July is:A) $85,000.B) $77,000.C) $82,000.D) $93,000.

Katie Boytis · Accepted Answer

Final Answer : D, Explanation :  The total budgeted factory overhead for July includes both variable and fixed overhead. Variable overhead is $3.00 per unit, so for 6,000 units, it is $18,000. Fixed overhead is $75,000. Therefore, the total is $18,000 + $75,000 = $93,000.

If the budgeted production for July is 6,000 units, then the total budgeted factory overhead for July is:

A) $85,000.
B) $77,000.
C) $82,000.
D) $93,000.

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