Assume a company reported the following information for this year:
Budgeted (estimated) production: 80,000 units
Budgeted sales: 80,000 units
Production capacity: 100,000 units
Selling price: $25 per unit
Variable manufacturing cost: $12 per unit
Estimated total manufacturing overhead cost (all fixed): $700,000
Selling and administrative expenses (all fixed): $250,000
Beginning inventories: $0
Using a predetermined overhead rate based on capacity with "units produced" as the allocation base, the closest to:
Multiple Choice
$230,000
$175,000
$210,000
$180,000