Ashley, a student in a cost accounting course, gets an assignment to submit by end of the day. He is stuck in the calculation of the budgeted cost of manufacturing overhead and anxiously asks for your help. Ashley provided you with the following information and is looking forward to getting a timely response from you.
You assist Ashley with the calculation and conclude that the total budgeted manufacturing overhead costs equal
A) $15,000.
B) $289,000.
C) $291,000.
D) $295,000.

Question

Ashley, a student in a cost accounting course, gets an assignment to submit by end of the day. He is stuck in the calculation of the budgeted cost of manufacturing overhead and anxiously asks for your help. Ashley provided you with the following information and is looking forward to getting a timely response from you.
 You assist Ashley with the calculation and conclude that the total budgeted manufacturing overhead costs equal
A) $15,000. 
B) $289,000. 
C) $291,000. 
D) $295,000.

Quizplus · Accepted Answer

Budgeted Cost of Manufacturing Overhead = Depreciation on Factory Equipment + Supervisor's Salary + Factory Rent = $4,000 + $5,000 + $6,000 = $15,000

Ashley, a Student in a Cost Accounting Course, Gets an Assignment