Question
Big Watches Co. manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During
Big Watches Co. manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5000 units, but its actual level of activity was 4700 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Fixed Element per Month Variable Element per Month Actual Results Revenue - 48.50 245,060 Direct Labor - 7.50 39,480 Direct Materials - 20.10 104,205 Manufacturing Overhead 31,000 4.15 52,870 What is MOH in the planning budget for October? Round your answer to the nearest whole number.
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