Skylark Has Forecast Production for the Next Three Months as Follows

question 14

Multiple Choice

Skylark has forecast production for the next three months as follows: July 4,900 units,August 6,600 units,September 7,500 units.Monthly manufacturing overhead is budgeted to be $17,000 plus $6 per unit produced.What is budgeted manufacturing overhead for August?

• A)$56,600
• B)$17,000
• C)$39,600
• D)$62,000

---

Definitions:

Supplies

Raw materials or tools necessary for the manufacturing or provision of services.

Services Rendered

Refers to the performance of services or completion of tasks by a company or individual in exchange for payment.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, consisting of debits and credits.

Clients Paid

Funds that have been transferred from clients to a company in exchange for services or products.