Atlas Manufacturing has a JIT system requiring ending inventory to be 25% of next month's sales. Expected April ending inventory is 48,500 units. May and June sales are forecasted at 280,000 and 295,000 units respectively. Variable overhead is assigned at $4.20 per unit. Fixed overhead costs are $385,000 monthly. Calculate the required production units and determine the total budgeted overhead for May. a) $1,625,400 b) $1,568,700 c) $1,589,500 d) $1,594,100

Atlas Manufacturing has a JIT system requiring ending inventory to be 25% of next month's sales. Expected April ending inventory is 48,500 units. May and June sales are forecasted at 280,000 and 295,000 units respectively. Variable overhead is assigned at $4.20 per unit. Fixed overhead costs are $385,000 monthly. Calculate the required production units and determine the total budgeted overhead for May. a) $1,625,400 b) $1,568,700 c) $1,589,500 d) $1,594,100

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...

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