Asked by Conner Reiss on Jun 16, 2024
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Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for October is 8,000 hours, then the total budgeted manufacturing overhead for October is:
A) $129,600
B) $43,600
C) $99,600
D) $86,000
Manufacturing Overhead Budget
A financial plan that estimates the indirect costs associated with manufacturing, including utilities, salaries, and maintenance.
Direct Labor-Hour
A measure of the labor directly involved in manufacturing or service provision, calculated in hours.
Variable Overhead Rate
A rate that fluctuates with changes in production levels or business activity, applied to allocate variable overhead costs to products or services.
- Develop and examine a manufacturing overhead budget, comprehending the variable and fixed elements involved.
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Learning Objectives
- Develop and examine a manufacturing overhead budget, comprehending the variable and fixed elements involved.
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