If the budgeted cash disbursements for factory overhead for September are $80,000,then the budgeted production in units for September must be?

Question

Quizplus · Accepted Answer

In order to determine the budgeted production in units for September, we need to use the factory overhead rate. This rate is calculated by dividing the total budgeted factory overhead costs by the total budgeted production in units. Let's assume that the factory overhead rate is $10 per unit ($80,000/8,000 units). To determine the budgeted production in units for September, we can simply divide the budgeted factory overhead costs ($80,000) by the factory overhead rate ($10 per unit). This gives us a budgeted production in units of 7,000 (i.e., $80,000/$10 per unit = 7,000 units). Therefore, the correct answer is C) 7,000.

If the Budgeted Cash Disbursements for Factory Overhead for September