Haley Fans manufactures and distributes circulators. The standard and actual costs for the manufacture of circulators follows:
$$\begin{array} { | l | l | }
\hline { \text { Standard Costs } } & \text { Actual Costs } \
\hline \text { Variable cost, \$24 per unit } & \text { Total variable cost, } \$ 12,300 \
\hline \text { Fixed cost } \$ 40 \text { per unit } & \text { Total fixed cosh } \$ 19,250 \
\hline
\end{array}$$
Budgeted factory overhead was $32,000. Overhead applied is based on the number of circulator units produced. The company estimated that 500 circulators would be produced, however only 480 were produced. How much is budgeted fixed overhead for the year?

Question

Haley Fans manufactures and distributes circulators. The standard and actual costs for the manufacture of circulators follows:
$$\begin{array} { | l | l | } 
\hline  { \text { Standard Costs } } & \text { Actual Costs } \
\hline \text { Variable cost, \$24 per unit } & \text { Total variable cost, } \$ 12,300 \
\hline \text { Fixed cost } \$ 40 \text { per unit } & \text { Total fixed cosh } \$ 19,250 \
\hline
\end{array}$$
Budgeted factory overhead was $32,000. Overhead applied is based on the number of circulator units produced. The company estimated that 500 circulators would be produced, however only 480 were produced. How much is budgeted fixed overhead for the year?

Quizplus · Accepted Answer

The budgeted fixed overhead is calculated by multiplying the fixed cost per unit ($40) by the estimated number of units (500), which equals $20,000.

Haley Fans Manufactures and Distributes Circulators Budgeted Factory Overhead Was $32,000