Required information

Use the following information for the Quick Study below.

Miami Solar manufactures solar panels for industrial use. The company

budgets production of $5,600$ units $($solar panels$)$ in July and $6,000$ units in

August.

QS $20-15$ Manufacturing: Factory overhead budget LO P$1$

Each unit requires $3$ hours of direct labor at a rate of $$17$ per hour. Variable factory

overhead is budgeted to be $60\%$ of direct labor cost, and fixed factory overhead is

$$187,000$ per month. Prepare a factory overhead budget for August.