Jordan Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:
-What is the total amount of overhead included in the overhead budget?

Question

Jordan Manufacturing Company expects to incur the following per unit costs for 1,000 units of production:  
-What is the total amount of overhead included in the overhead budget?

Quizplus · Accepted Answer

The total overhead can be calculated by adding up all the indirect costs per unit. Adding $1.50 (rent), $0.50 (utilities), $2.50 (supervision), $1.00 (insurance), and $2.50 (depreciation) gives a total of $8.00 per unit. Multiplying this by the 1,000 units of production gives a total overhead budget of $8,000. Therefore, the correct choice is D.

Jordan Manufacturing Company Expects to Incur the Following Per Unit