Flagstaff Company has budgeted production units for July of 7,900 units.Variable factory overhead is $1.20 per unit.Budgeted fixed factory overhead is $19,000,which includes $3,000 of factory equipment depreciation.Compute the total budgeted overhead to be reported on the factory overhead budget for the month.

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Quizplus · Accepted Answer

The total budgeted overhead is the sum of variable and fixed overheads. Variable overhead is $1.20 per unit for 7,900 units, totaling $9,480. Adding the fixed overhead of $19,000 gives a total of $28,480.

Flagstaff Company Has Budgeted Production Units for July of 7,900