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