Total Budgeted Factory Overhead Question , Will Give Best Rating Immediately

Question

The following data are budgeted for Culver Company :

April : Sales Units : 12,000 Production Units : 15,000

May : Sales Units : 17,000 Production Units : 16,000

June : Sales Units : 15,000 Production Units : 13,000

 

Each unit requires 0.75 hours of direct labor at a cost of $6.50 per hour. Budgeted variable factory overhead is $3.00 per direct labor hour, budgeted fixed factory overhead is $75,000 per month. What is the total budgeted factory overhead for the month of May?

A) 111,000 B) 133,500 C) 108,750 D) 104,250 E) Correct Answer Not Listed

Answer was A) but I need help with steps as to how. Thanks :)

Answer 1

The correct answer is A) $111,000

 

We know the units produced in May = 16,000 units

The budgeted variable overhead 0.75DLH x$3X16000= 36,000

The budgeted Fixed Factory OH                                = 75.000

Total budgeted Factory OH for MAY                           = 111,000