Willard Company anticipates that its fixed manufacturing overhead costs will be $50,000 during the next period. Its variable manufacturing overhead is expected to be $8 per unit produced.

Required:
1. What amount of overhead should be budgeted if the production budget shows that 40,000 units are to be produced?
2. What amount of overhead should be budgeted if the production budget shows that 50,000 units are to be produced?
3. Compute the total overhead cost per unit for requirements 1 and 2.

Question

Willard Company anticipates that its fixed manufacturing overhead costs will be $50,000 during the next period. Its variable manufacturing overhead is expected to be $8 per unit produced.

Required:
1. What amount of overhead should be budgeted if the production budget shows that 40,000 units are to be produced?
2. What amount of overhead should be budgeted if the production budget shows that 50,000 units are to be produced?
3. Compute the total overhead cost per unit for requirements 1 and 2.

Quizplus · Accepted Answer

The Answer of Willard Company anticipates that its fixed manufacturing overhead costs will be $50,000 during the next period. Its variable manufacturing overhead is expected to be $8 per unit produced.

Required:
1. What amount of overhead should be budgeted if the production budget shows that 40,000 units are to be produced?
2. What amount of overhead should be budgeted if the production budget shows that 50,000 units are to be produced?
3. Compute the total overhead cost per unit for requirements 1 and 2.

Willard Company Anticipates That Its Fixed Manufacturing Overhead Costs Will