Haley Fans manufactures and distributes circulators.The standard and actual costs for the manufacture of circulators are as follows: $\begin{array}{|l|l|}
\hline {\text { Standard Costs }} &{\text { Actual Costs }} \
\hline \text { Variable cost, } \$ 24 \text { per unit } & \text { Total variable cost, } \$ 12,300 \
\hline \text { Fixed cost, } \$ 40 \text { per unit } & \text { Total fixed cost, } \$ 19,250 \
\hline
\end{array}$ Budgeted factory overhead was $32,000.Overhead applied is based on the number of circulator units produced.The company estimated that 500 circulators would be produced, however only 480 were produced.How much is budgeted fixed overhead for the year?
A)$30,720
B)$19,200
C)$20,000
D)$12,000

Question

Quizplus · Accepted Answer

The budgeted fixed overhead for the year is given as $32,000. This amount includes both variable and fixed costs. Since the question specifically asks for the budgeted fixed overhead, we consider the total budgeted overhead and subtract the variable portion to find the fixed portion. However, the provided information and question structure lead to a direct understanding that the $32,000 itself represents the total budgeted overhead, which typically includes fixed overhead. Given no variable overhead component is specified separately from the $32,000, the question seems to aim at the fixed overhead component directly, which might be a misunderstanding in the interpretation. The correct approach to find the budgeted fixed overhead would typically involve subtracting any variable overhead components from the total overhead to isolate the fixed overhead. However, without clear variable overhead data separate from the $32,000, the question's intent might be misunderstood. Therefore, the correct answer should be based on the information provided and the usual understanding of budgeted fixed overhead in the context of total overhead costs.

Haley Fans Manufactures and Distributes Circulators Budgeted Factory Overhead Was $32,000