Question
Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that
Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 89,100 units. June and July sales are estimated to be 297,000 and 307,000 units, respectively. Keegan assigns variable overhead at a rate of $3.50 per unit of production. Fixed overhead equals $417,000 per month. Compute the number of units to be produced and use this amount to compute the total budgeted overhead that would appear on the factory overhead budget for month ended June 30. |
$1,456,500. | |
$1,050,000. | |
$1,477,000. | |
$1,467,000. | |
$1,491,500. |
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