Flagstaff Company has budgeted July production 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 for July.

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Quizplus · Accepted Answer

The total budgeted overhead for July is calculated by adding the variable factory overhead and the fixed factory overhead. Variable overhead is $1.20 per unit for 7,900 units, which equals $9,480. Adding the fixed overhead of $19,000 gives a total of $28,480.

Flagstaff Company Has Budgeted July Production of 7,900 Units