Keegan Company Manufactures a Single Product and Has a JIT

question 22

Multiple Choice

Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that May's ending inventory will consist of 20,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Keegan assigns variable overhead at a rate of $1.80 per unit of production. Fixed overhead equals $400,000 per month. Compute the number of units to be produced and use to compute the total budgeted overhead that would appear on the factory overhead budget for month ended June 30.

• A) $520,200.
• B) $920,200.
• C) $922,000.
• D) $904,000.
• E) $905,800.

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Definitions:

Psychodynamic Therapy

A therapeutic approach emphasizing the exploration of the unconscious mind and its influence on human behavior, rooted in psychoanalytic theory.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful thinking patterns, beliefs, and attitudes to improve emotional regulation and develop personal coping strategies.

Aversive Conditioning

A form of behavior modification that involves associating an unwanted behavior with an unpleasant stimulus to reduce the behavior's occurrence.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxieties by gradual exposure to the feared object or situation.