Sullivan Company
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:

Question

Quizplus · Accepted Answer

The total budgeted factory overhead for April is calculated by adding the variable and fixed overhead costs. Variable overhead is $3.00 per unit for 6,000 units, which equals $18,000. The fixed overhead is $75,000 per month. Therefore, the total budgeted factory overhead for April is $18,000 (variable) + $75,000 (fixed) = $93,000.

Sullivan Company Sullivan Company Is Preparing Its Manufacturing Overhead Budget for the for the Second