Answer:
$125,000
Explanation:
Given that,
Variable manufacturing overhead rate = $5.00 per direct labor hour
Budgeted direct labor cost = $20 per hour
Total budgeted fixed overhead = $25,000 per month
Total budgeted direct labor hours = 20,000
Total budgeted manufacturing overhead for July:
= Variable manufacturing overhead + Fixed manufacturing overhead
= (Budgeted direct labor hours × Variable overhead rate) + $25,000
= (20,000 × $5) + $25,000
= $100,000 + $25,000
= $125,000
