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laston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 189,000 in October, 197,500 in November, and 194,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $146,000 per month. Compute the total budgeted overhead for October?

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Answer:

Total= $278,300

Explanation:

Giving the following information:

The production budget indicates that the number of units expected to be produced is 189,000 in October, 197,500 in November, and 194,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $146,000 per month.

Budgeted overhead for October:

Variable= 0.70*189,000= $132,300

Fixed= $146,000

Total= $278,300

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