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Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of units expected to be produced are 186,000 in October, 194,500 in November, and 191,000 in December. Glaston assigns variable overhead at a rate of $0.70 per unit of production. Fixed overhead equals $143,000 per month. Compute the total budgeted overhead for October.

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Answer:

Budgeted overhead (October)= $273,200

Explanation:

Giving the following information:

Production= 186,000 in October

Predetermined variable overhead= $0.70 per unit.

Fixed overhead equals $143,000 per month.

To calculate the budgeted overhead for October, we need to use the following formula:

Budgeted overhead (October)= 0.7*186,000 + 143,000

Budgeted overhead (October)= $273,200

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