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25 December, 21:28

Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,000 per month. The $25,000 per month includes $7,000 in depreciation expense. Total budgeted direct labor-hours for the month of July is 20,000. Based on the month of July only, the predetermined overhead rate is $. Total budgeted manufacturing overhead for July is: ___.

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  1. 25 December, 23:33
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    Manufacturing overhead for July will be $55000

    Explanation:

    We have given budgeted labor hour in month of July = 20000

    Variable overhead rate = $5

    So variable manufacturing overhead = 20000*$5 = $100000

    Fixed manufacturing overhead = $25000

    Now total manufacturing overhead = $100000+$25000 = $125000

    Depreciation expense = $7000

    So manufacturing overhead for July = $125000 - $7000 = $55000
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