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Sunland Companyis planning to sell1100boxes of ceramic tile, with production estimated at470boxes during May. Each box of tile requires44pounds of clay mix and a0.50hour of
Sunland Companyis planning to sell1100boxes of ceramic tile, with production estimated at470boxes during May. Each box of tile requires44pounds of clay mix and a0.50hour of direct labor. Clay mix costs $0.40per pound and employees of the company are paid $18per hour. Manufacturing overhead is applied at a rate of110% of direct labor costs.Sunlandhas4000pounds of clay mix in beginning inventory and wants to have3700pounds in ending inventory.
What is the total amount to be budgeted for manufacturing overhead for the month?
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