Solution-Compute the budgeted total factory overhead for

Compute the budgeted total factory overhead for June

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Question - Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 87,900 units. June and July sales are estimated to be 293,000 and 303,000 units, respectively. Trago assigns variable overhead at a rate of $3.10 per unit of production. Fixed overhead equals $413,000 per month. Compute the budgeted total factory overhead for June.

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Compute the budgeted total factory overhead for June

Reference no: EM133069528

Reference no: EM133069528

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