Question

t20 The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the...

t20

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

Homework Answers

Answer #1

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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