Question

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $6 per direct labor-hour; the budgeted fixed manufacturing overhead is $81,000 per month, of which $15,600 is factory depreciation. If the budgeted direct labor time for November is 7,600 hours, then the total budgeted manufacturing overhead for November is: Multiple Choice $111,000 $126,600 $81,000 $142,200

Answer 1

Budgeted Total manufacturing overhead $126,600

Step-by-step explanation:

The budgeted manufacturing overhead is the sum of the variable and fixed manufacturing overhead.

$

Variable overhead = $6 per direct × 7,600 = 45600

Fixed manufacturing overhead = 81,000

Budgeted Total manufacturing overhead 126,600