Sierra Manufacturing has a JIT policy requiring ending inventory to equal 15% of next month's sales. The company estimates April's ending inventory will be 45,000 units. May and June sales are estimated at 400,000 and 420,000 units respectively. Sierra assigns variable overhead at $3.20 per unit of production. Fixed overhead is $520,000 per month. Calculate the number of units to be produced and the total budgeted overhead for May. a. $1,520,000 b. $1,808,000 c. $ 1,857,600 d. $2,368,000

Sierra Manufacturing has a JIT policy requiring ending inventory to equal 15% of next month's sales. The company estimates April's ending inventory will be 45,000 units. May and June sales are estimated at 400,000 and 420,000 units respectively. Sierra assigns variable overhead at $3.20 per unit of production. Fixed overhead is $520,000 per month. Calculate the number of units to be produced and the total budgeted overhead for May. a. $1,520,000 b. $1,808,000 c. $ 1,857,600 d. $2,368,000

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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