Skybird Has Forecast Sales for the Next Three Months as Follows

question 73

Multiple Choice

Skybird has forecast sales for the next three months as follows: July 4,000 units,August 6,000 units,September 7,500 units.Skybird'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 costs are budgeted as follows: What is budgeted manufacturing overhead cost for July?

• A)$32,000
• B)$41,000
• C)$46,400
• D)$17,000

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