Larken Has Forecast Sales for the Next Three Months as Follows

question 84

Multiple Choice

Larken has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Larken's policy is to have an ending inventory of 40% of the next month's sales needs on hand.July 1 inventory is projected to be 1,500 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)$53,000
• D)$38,600

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