Question

he Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is factory depreciation. If the budgeted direct labor time for November is 7,000 hours, then the total budgeted manufacturing overhead for November is:

Answer 1

the total budgeted factory overhead is $110,000

Step-by-step explanation:

The computation of the total budgeted manufacturing overhead for the month of November is shown below:

Total budgeted factory overhead for November is

= Variable Factory Overhead rate per direct labor hour × budgeted direct labor time for November + Fixed Factory Overhead per month

= $5 × 7,000 hours + $75,000

= $35,000 + $75,000

= $110,000

hence, the total budgeted factory overhead is $110,000