The following budget data pertain to the Machining Departmen…
The following budget data pertain to the Machining Department of Grind Company: Maximum capacity 60,000 units Machine hours per unit 2.50 Variable factory overhead $ 3.60 per machine hour Fixed factory overhead $ 433,500 The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production.The budgeted total factory overhead for the Machining Department is: