Pacific has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Pacific'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 costs are budgeted as follows: Fixed manufacturing costs$17,000 Fixed selling costs$10,000 Fixed administrative costs$8,300 Variable manufacturing costs$5per unit producedVariable selling costs$3per unit soldWhat is budgeted manufacturing overhead cost for August?
A. $50,000
B. $33,000
C. $47,000
D. $32,000
Answer: A
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