Oliver toys produces spider toys and has a Just in time policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. It assigns variable overhead at a rate of 1.80 per unit of production. Fixed overhead equals 400,000 per month. Compute the no.of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.

Oliver toys produces spider toys and has a Just in time policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. It assigns variable overhead at a rate of 1.80 per unit of production. Fixed overhead equals 400,000 per month. Compute the no.of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for the month of June.

Name: Oliver toys produces spider toys and has a Just in time policy that e
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Description: Oliver toys produces spider toys and has a Just in time policy that ending inventory must equal 5%of the next month's sales.It estimates that May's ending inventory will consist of 14,000 units. June and July sales areestimated to be 280,000 and 290

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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