The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation.
-If the budgeted production for July is 6,000 units,what is the total budgeted factory overhead for July?

Question

Quizplus · Accepted Answer

The budgeted factory overhead is given by multiplying the predetermined overhead rate by the budgeted production. Without information on the predetermined overhead rate, we cannot calculate the budgeted factory overhead.

The Culver Company Is Preparing Its Manufacturing Overhead Budget for the Third