Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
MOH Costs
Variable MOH Costs $1.25 per unit produced
Fixed MOH Costs $225,000
Other Info:
Units produced in 2016 42,000
Units sold in 2016 40,500
Whistle Works sells each whistle for $12. It's been determined that each unit costs $7.25 to manufacture. How much is the total budgeted MOH costs for the year ended 2016?
a) $222,750
b) $232,500
c) $229,500
d) $235,500