Reference no: EM132718179

Question - The management reports of APC Pty Ltd shows the following budgeted costs at a production and sales level of 20,000 units:

Conversion cost $150,000

Variable factory overhead $20,000

Fixed factory overhead $56,000

Prime cost $237,000

Variable selling expenses $45,000

Fixed selling and administration expenses $130,000

APC Pty Ltd accounts for all factory costs as inventoriable (product) costs.

Expected factory overhead cost for a production level of 25,000 units.

At a production level of 10,000 units, the budgeted factory overhead cost per unit is:

Fixed cost = $15

Variable cost = $9

Required - Calculate the total budgeted overhead cost of producing 15,000 units.