Clydes Dog Biscuit Bakery manufactures boxes of dog treats. The following is budgeted production for...
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Accounting
Clydes Dog Biscuit Bakery manufactures boxes of dog treats. The following is budgeted production for the last six months of 2022:
|
| July | August | September | October | November | December |
| Budgeted production (boxes) | 78,000 | 79,400 | 80,200 | 82,000 | 81,500 | 82,800 |
The firm also provided the following information:
- Company policy calls for the ending raw materials inventory of a month to equal 25% of the next months raw materials production needs.
- Each box of dog treats requires 0.8 pounds of direct materials, at a cost of $2 per pound
- Each box of dog treats requires 0.25 direct labor hours, at a cost of $15 per DL hour.
- Variable OH is $1.80 per DL hour. Fixed OH is $71,820 per month.
The budgeted total Factory OH cost for October is:
Group of answer choices
$108,720
$107,910
$108,495
$106,920
$107,550
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