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Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that
Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 28,800 units. June and July sales are estimated to be 288,000 and 298,000 units, respectively. Trago assigns variable overhead at a rate of $2.60 per unit of production. Fixed overhead equals $408,000 per month. Compute the budgeted total factory overhead for June.
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