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The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5 per direct labor-hour; the budgeted fixed manufacturing overhead is $85,000 per month, of which $16,000 is factory depreciation.
If the budgeted direct labor time for November is 8,000 hours, then the total budgeted manufacturing overhead for November is:
Multiple Choice
$109,000
$125,000
$85,000
$141,000
ANSWER
The total budgeted manufacturing overhead for November is= $110,000
Explanation- Budgeted manufacturing overhead for November= Variable manufacturing overhead+ Fixed manufacturing overhead
= (8,000 hours*$5 per hour) + $85,000
= $40,000+$85,000
= $125,000
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