Trago Company Manufactures a Single Product and Has a JIT

Multiple Choice

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales.It estimates that May's ending inventory will consist of 14,000 units.June and July sales are estimated to be 280,000 and 290,000 units,respectively.Trago assigns variable overhead at a rate of $1.80 per unit of production.Fixed overhead equals $400,000 per month.Compute the total budgeted overhead for June.

A) $920,200.
B) $904,900.
C) $930,100.
D) $922,000.
E) $878,800.