Question:
Emerald Corporaiton's overhead budget for 2013 was as follows:
|
Factory Supervision
|
$450,000
|
|
Utilities costs
|
250,000
|
|
Insurance
|
30,000
|
|
Property taxes
|
25,000
|
|
Deprectiation
|
125,000
|
|
Total
|
$880,000
|
750,000 units were produced in 2013. Direct labor cost is $42,000,000. For both 2013 and 2014, each unit required 4 direct labor hours at $14 per hour. In 2014, property taxes, insurance, and depreciation are expected to stay at 2013 levels. Utilities costs vary proprotionally with units produced. Factory supervision increases by increments of $45,000 for every 300,000 increase in direct labor hours. The 2014 expected production is 1,200,000 units. If the expected 2014 expense for factory supervision and for utilities costs is $600,000 and $150,000 respectively, then the total for the 2014 overhead budget of Emerald is?