Channing Company Channing 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 Channing Company.If the budgeted production for May is 5,000 units,then the total budgeted factory overhead per unit:

Question

Quizplus · Accepted Answer

The total budgeted factory overhead per unit is calculated by adding the variable overhead per unit to the fixed overhead per unit. Variable overhead is $3.00 per unit. Fixed overhead for May is $75,000, and with 5,000 units, the fixed overhead per unit is $75,000 / 5,000 = $15.00. Therefore, the total overhead per unit is $3.00 + $15.00 = $18.00.

Channing Company Channing Company Is Preparing Its Manufacturing Overhead Budget