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Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,900 units (solar panels) in July and 6,100 units in August.

rev: 07_21_2021_QC_CS-270398

Each unit requires 5 hours of direct labor at a rate of $17 per hour. The company applies variable overhead at the rate of $20 per direct labor hour. Budgeted fixed factory overhead is $172,000 per month. Prepare a factory overhead budget for August.

Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,900 units (solar panels) in July and 6,100 units in August. Each unit requires 5 hours of direct labor at a rate of $17 per hour. The company applies variable overhead at the rate of $20 per direct labor hour. Budgeted fixed factory overhead is $172,000 per month. Prepare a factory overhead budget for August. MIAMI SOLAR Factory Overhead Budget August Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead $