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    Overhead budgeting

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    Use the following to answer questions 12-13:
    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.

    12. If the budgeted production for August is 5,000 units, then the total budgeted factory overhead per unit is:
    A) $15. C) $20.
    B) $18. D) $22.

    13. If the budgeted production for July is 6,000 units, then the total budgeted factory overhead for July is:
    A) $77,000. C) $85,000.
    B) $82,000. D) $93,000.

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    https://brainmass.com/business/accounting/overhead-budgeting-51756

    Solution Summary

    The solution computes the overhead budgeting.

    $2.19

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