The manufacturing overhead budget at Cardera Corporation is based on budgeted di

Question

The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in January. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $107,310 per month, which includes depreciation of $18,070. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for January should be:

Explanation / Answer

Cardera Corporation Details Amt $ Budgeted fixed manufacturing OH for Jan               107,310 Budgeted Direct Labor Hours Jan                   7,300 Fixed overhead rate per direct labor hour -Jan=                 14.70 Variable Overhead rate per Direct Labor Hour Jan =                    8.60 Total Predetermined Overhead Rate per Direct Labor Hour Jan =Fixed rate+Variable Rate per Direct Labor Hour= $             23.30 per DLH

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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