Whistle Works manufacturers safety whistle keychains. They have the following in

Question

Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget: MOH Costs Variable MOH Costs Fixed MOH Costs $1.00 per unit produced $232,000 Other Info: Units produced in 2016 Units sold in 2016 51,000 48,500 Whistle Works sells each whistle for $6. It's been determined that each unit costs $7.25 to manufacture. How much is total budgeted operating expenses for the year ended 2016? OA. $232,000 OB. $283,000 OC. $280,500 O D. $99,500

Explanation / Answer

Total Budgeted operating expense : [unit produced * variable overhead cost ] +fixed overhead cost

                    =[51000*1]+ 232000

                     = 51000+232000

                     = $ 283,000

correct option is "B"

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