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Pumped Up Kicks is a distributor of boots throughout the Southeast. The company is currently in the process of preparing its budget for 2012. The company expects sales in 2012 to remain constant at? 12,000 units per month. The company requires ending inventory on hand at the end of each month equal? 5% of the next? month’s anticipated unit sales. The ending inventory requirement was also met on December? 31, 2011. The company anticipates variable manufacturing overhead costs will equal? $6.50 per unit produced throughout the year and total annual fixed manufacturing overhead costs will equal? $36,000, $12,000 of which is attributable to factory depreciation.
What are the? company’s budgeted manufacturing overhead costs for the first quarter of 2012?
A. ?$243,000
B. ?$258,000
C. ?$254,700
D. ?$242,000
E. ?$270,000
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