The manufacturing overhead budget at Latronica Corporation is based on budgeted

Question

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $132,770 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. the predetermined overhead rate for August should be. A) $8.60 B)$27.30 C)$23.80 D)$18.70

Explanation / Answer

B

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