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 6,000 direct labor-hours will be required in August. The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $109,800 per month, which includes depreciation of $24,970. 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:

$26.70

$23.20

$18.30

$8.40

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,000 direct labor-hours will be required in August. The variable overhead rate is $8.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $109,800 per month, which includes depreciation of $24,970. 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:

Explanation / Answer

The predetermined overhead rate for August should be=6,000 direct labor-hours*$8.40 per direct labor-hour.+fixed manufacturing overhead is $109,800 per month-depreciation of $24,970. /6,000=$22.538 per direct labor hour

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.