Flagstaff Company has budgeted production units for July of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed factory overhead is $19,000, which includes $3,000 of factory equipment depreciation. Compute the total budgeted overhead to be reported on the factory overhead budget for the month.

Question

Quizplus · Accepted Answer

The total budgeted overhead is the sum of variable and fixed overhead. Variable overhead is 7,900 units * $1.20 = $9,480. Adding the fixed overhead of $19,000 gives a total of $28,480.

Flagstaff Company Has Budgeted Production Units for July of 7,900