Asked by Carrie Steel on Jun 15, 2024
Verified
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.b. Determine the predetermined overhead rate for February.
Manufacturing Overhead Budget
A detailed plan that outlines the expected indirect factory-related costs for a production period.
Direct Labor-Hours
The total hours of labor directly involved in manufacturing a product, used in job costing and determining labor costs.
Fixed Manufacturing Overhead
The portion of manufacturing overhead costs that remains constant regardless of the level of production or sales volume.
- Prepare and analyze direct labor budgets and manufacturing overhead budgets.
Verified Answer
b.
Learning Objectives
- Prepare and analyze direct labor budgets and manufacturing overhead budgets.
Related questions
Brockney Incorporated Bases Its Manufacturing Overhead Budget on Budgeted Direct ...
The Direct Labor Budget of Faver Corporation for the Upcoming ...
The Manufacturing Overhead Budget of Reigle Corporation Is Based on ...
The Manufacturing Overhead Budget at Foshay Corporation Is Based on ...
Stefanovich Corporation Makes One Product ...