Single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282.000 and 292.000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402.000 per month Compute the total budgeted overhead for June Multiple Choice $978,000. $968.000 $566.000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
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Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that
May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282.000 and 292.000 units, respectively. Trago assigns
variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402.000 per month. Compute the total budgeted overhead for June
Multiple Choice
$978,000.
$968.000
$566.000.
$966.000.
$986,000
Transcribed Image Text:Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,200 units. June and July sales are estimated to be 282.000 and 292.000 units, respectively. Trago assigns variable overhead at a rate of $2.00 per unit of production. Fixed overhead equals $402.000 per month. Compute the total budgeted overhead for June Multiple Choice $978,000. $968.000 $566.000. $966.000. $986,000
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