Reference: 07-12 the Culver Company Is Preparing Its Manufacturing Overhead Budget for Budget

question 88

Multiple Choice

Reference: 07-12
The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with
$16,000 of this amount being factory depreciation. Variable factory overhead is paid in the month incurred.
-If the budgeted cash disbursements for factory overhead for September are $80,000, then the budgeted production in units for September must be?

• A)7,000.
• B)6,500.
• C)7,400.
• D)6,200.

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