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The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours.The direct labor budget indicates that 5,800 direct labor-hours will be required in May.The variable overhead rate is $9.10 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $104,400 per month, which includes depreciation of $8,120.All other fixed manufacturing overhead costs represent current cash flows.The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for May should be:
A) $9.10
B) $27.10
C) $18.00
D) $25.70
On Jun 09, 2024