Mccoo Inc. bases its manufacturing overhead budget on budgeted direct labor-hour

Question

Mccoo Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $92,130 per month, which includes depreciation of $19,820. All other fixed manufacturing overhead costs represent current cash flows. The November direct labor budget indicates that 8,300 direct labor-hours will be required in that month.

Determine the cash disbursement for manufacturing overhead for November. (Omit the "$" sign in your response.)

Determine the predetermined overhead rate for November. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

  Cash disbursement for manufacturing overhead: variable overhead rate 1.4 fixed manufacturing overheads          92,130 less: depreciation          19,820 manufacturing overheads -cash          72,310 direct labor hours-November            8,300 total variable overhead (8300*1.4)          11,620 a) Total cash disbursement          83,930 Predetermined overhead rate: Fixed manufacturing overhead    92,130.00 direct labor hours      8,300.00 b)Predetermined overhead rate            11.10

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects