Asked by Lynette Madison on May 25, 2024
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The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours.The February direct labor budget indicates that 5,800 direct labor-hours will be required in that month.The variable overhead rate is $4.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $82,360 per month, which includes depreciation of $16,820.All other fixed manufacturing overhead costs represent current cash flows.
Required:
a.Determine the cash disbursements for manufacturing overhead for February.Show your work!
b.Determine the predetermined overhead rate for February.Show your work!
Manufacturing Overhead Budget
A financial plan that estimates the expected costs related to manufacturing overhead for a specific period.
Variable Overhead Rate
A financial metric that represents the costs that vary with production levels in manufacturing, calculated as variable overhead costs divided by a measure of activity.
Fixed Manufacturing Overhead
Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, insurance, and salaries of certain employees.
- Calculate variable and fixed manufacturing overhead costs.
- Analyze and prepare a manufacturing overhead budget.
Verified Answer
Learning Objectives
- Calculate variable and fixed manufacturing overhead costs.
- Analyze and prepare a manufacturing overhead budget.
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