Asked by Carlos Trejo on May 12, 2024
Verified
Brockney Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,400 per month, which includes depreciation of $19,670. All other fixed manufacturing overhead costs represent current cash flows. The July direct labor budget indicates that 8,800 direct labor-hours will be required in that month.Required:a. Determine the cash disbursements for manufacturing overhead for July.b. Determine the predetermined overhead rate for July. (Round your answer to 2 decimal places.)
Variable Overhead Rate
The portion of overhead costs that varies directly with production volume, calculated as variable overhead costs divided by a certain measure of activity (e.g., labor hours or machine hours).
Manufacturing Overhead Budget
An estimation of all manufacturing costs, excluding direct materials and direct labor, planned for a specific period.
Direct Labor-Hours
The cumulative hours that employees engaged in the manufacturing process have completed.
- Construct and assess financial plans for direct labor and manufacturing overhead expenditures.
Verified Answer
b.
Learning Objectives
- Construct and assess financial plans for direct labor and manufacturing overhead expenditures.
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