Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Pacific's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Monthly costs are budgeted as follows: What is budgeted manufacturing overhead cost for August?
A) $50,000
B) $47,000
C) $33,000
D) $32,000

Question

Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Pacific's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Monthly costs are budgeted as follows:  What is budgeted manufacturing overhead cost for August?
A) $50,000 
B) $47,000 
C) $33,000 
D) $32,000

Quizplus · Accepted Answer

The Answer of Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Pacific's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Monthly costs are budgeted as follows:  What is budgeted manufacturing overhead cost for August?
A) $50,000 
B) $47,000 
C) $33,000 
D) $32,000

Pacific Has Forecast Sales for the Next Three Months as Follows