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Extracts from a company's budget are as follows:
The standard variable production overhead cost per unit is $5. Variable production overhead is paid 70 per cent in the month incurred and 30 per cent in the following month. Fixed production overhead cost is paid in the month following that in which it is incurred and includes depreciation of $2,280 per month. What is the payment for total production overhead cost shown in the cash budget for September? A. $42,870 B. $47,590 C. $45,310 D. $32,220 |