Skylark has forecast production for the next three months as follows: July 4,900 units,August 6,600 units,September 7,500 units.Monthly manufacturing overhead is budgeted to be $17,000 plus $6 per unit produced.What is budgeted manufacturing overhead for July?
A)$29,400
B)$47,000
C)$46,400
D)$17,000

Question

Quizplus · Accepted Answer

To calculate the budgeted manufacturing overhead for July, we need to multiply the number of units produced in July (4,900) by the variable manufacturing overhead per unit ($6), and then add the fixed manufacturing overhead ($17,000).

Variable manufacturing overhead per unit = $6 
Number of units produced in July = 4,900

Budgeted manufacturing overhead for July = (4,900 x $6) + $17,000 = $46,400

Therefore, the best choice is C.

Skylark Has Forecast Production for the Next Three Months as Follows