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Vesnalui
3 months ago
15

Bickford Company plans to sell 135,000 units in November and 180,000 units in December. Bickford's policy is that 10% of the fol

lowing month's sales must be in ending inventory. On November 1, there were 14,000 units in inventory. It takes 30 minutes of direct labor time to make one unit. Direct labor wages average $17 per hour. Variable overhead is applied at the rate of $5 per direct labor hour. Fixed overhead is budgeted at $56,500 per month. What is the budgeted overhead for November
Business
1 answer:
arsen [3.4K]3 months ago
6 0

Answer:

$404,000

Explanation:

Production Unit totals $135,000 plus $18,000 minus $14,000, resulting in $139,000.

The labor time for each unit is 30 minutes, equivalent to 0.5 hours.

The total labor hours equate to $139,000 multiplied by 0.5, giving 69,500 hours.

The variable overhead amounts to 69,500 hours multiplied by 5, resulting in $347,500.

Summing up the total overhead costs yields $347,500 plus $56,500, leading to a total of $404,000.

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1 month ago
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