Bortolli Company manufactures pasta bowls. Production of bowls for the coming three months is budgeted as follows:
Each bowl requires 45 minutes of direct labour time. Direct labour wages average $20 per hour. Monthly overhead averages $4 per direct labour hour plus fixed overhead of $2,100.
$$\begin{array} { l l }
\text { May } & 20,000 \
\text { June } & 30,000 \
\text { July } & 35,000
\end{array}$$
-Refer to the Figure.What is the total overhead budgeted for the month of June?

Question

Bortolli Company manufactures pasta bowls. Production of bowls for the coming three months is budgeted as follows:
Each bowl requires 45 minutes of direct labour time. Direct labour wages average $20 per hour. Monthly overhead averages $4 per direct labour hour plus fixed overhead of $2,100.
 $$\begin{array} { l l } 
\text { May } & 20,000 \
\text { June } & 30,000 \
\text { July } & 35,000
\end{array}$$
-Refer to the Figure.What is the total overhead budgeted for the month of June?

Quizplus · Accepted Answer

The total overhead for June is calculated by first determining the direct labour hours needed: 30,000 bowls * 0.75 hours/bowl = 22,500 hours. Variable overhead is $4 per hour, so 22,500 hours * $4 = $90,000. Adding fixed overhead of $2,100 gives a total of $92,100.

Bortolli Company Manufactures Pasta Bowls May 20,000 June 30,000 July 35,000\begin{array} { l l } \text { May } & 20,000 \\\text { June } & 30,000 \\\text { July } & 35,000\end{array} May June July ​20,00030,00035,000​

Bortolli Company Manufactures Pasta Bowls $\begin{array} { l l } \text { May } & 20,000 \\\text { June } & 30,000 \\\text { July } & 35,000\end{array}$