Maxwell Manufacturing operates with a just-in-time inventory system where ending inventory must equal 15% of the following month's sales. The company projects March ending inventory to be 15,600 units. April and May sales are estimated at 104,000 and 112,000 units respectively. Variable overhead is assigned at $3.50 per unit of production, and fixed overhead is $225,000 per month. Calculate the total budgeted overhead for April.

Maxwell Manufacturing operates with a just-in-time inventory system where ending inventory must equal 15% of the following month's sales. The company projects March ending inventory to be 15,600 units. April and May sales are estimated at 104,000 and 112,000 units respectively. Variable overhead is assigned at $3.50 per unit of production, and fixed overhead is $225,000 per month. Calculate the total budgeted overhead for April.

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 2E: The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units....

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