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Larken has forecast sales for the next three months as follows: July 4,000 units, August...

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Accounting

Larken has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Larken's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Monthly manufacturing overhead is budgeted to be $17,000 plus $6 per unit produced. What is budgeted manufacturing overhead for August?

a) $53,000

b) $17,000

c) $56,600

d) $38,600

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