LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH for the year is expected to be $500,000 and estimated DLH for the year are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. How much will LouAnne budget for total factory overhead costs in February?

LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH for the year is expected to be $500,000 and estimated DLH for the year are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. How much will LouAnne budget for total factory overhead costs in February?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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LouAnne's Widgets has the following sales and production for the next quarter: January February March Sales 4,000 units 7,000 units 9,000 units Production 4,600 units 7,400 units 9,200 units Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor is paid in the month incurred. FOH is applied based on DLH. Estimated variable FOH for the year is expected to be $500,000 and estimated DLH for the year are expected to be 100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of that amount being depreciation of factory equipment and building. FOH is paid in the month incurred. How much cash will LouAnne need on hand to pay for February's total factory overhead costs?
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