Glaston Company Manufactures a Single Product Using a JIT Inventory

question 56

Multiple Choice

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 193,000 in October,201,500 in November,and 198,000 in December.Glaston assigns variable overhead at a rate of $0.75 per unit of production.Fixed overhead equals $150,000 per month.Compute the total budgeted overhead that would appear on the factory overhead budget for month of October.

• A)$343,000.
• B)$150,000.
• C)$144,750.
• D)$301,125.
• E)$294,750.

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Definitions:

Market Portfolio

A portfolio consisting of all stocks.

Correlation

A statistical measure that describes the extent to which two variables change together, and thus how well one variable can predict the other.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in financial metrics like WACC.

Standard Deviations

A measure of the dispersion or variation in a set of values, used to indicate volatility in financial markets.