Ask Question
23 May, 21:45

The 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 December is 8,000 hours, then average budgeted manufacturing overhead per direct labor-hour is closest to: Multiple Choice $14.38 per direct labor-hour $12.50 per direct labor-hour $9.38 per direct labor-hour $16.25 per direct labor-hour

+3
Answers (1)
  1. 24 May, 01:30
    0
    Correct answer is A.

    $14.38 per direct labor-hour

    Explanation:

    If the budgeted direct labor time for December is 8,000 hours, then total budgeted factory overhead per direct labor hour is (rounded):

    Total budgeted factory overhead for December = Variable Factory Overhead rate per direct labor hour * budgeted direct labor time for December + Fixed Factory Overhead per month

    Total budgeted factory overhead for December = 5*8000 + 75000

    Total budgeted factory overhead for December = $ 115,000

    Total budgeted factory overhead per direct labor hour = Total budgeted factory overhead for December/budgeted direct labor time for December

    Total budgeted factory overhead per direct labor hour = 115000/8000

    Total budgeted factory overhead per direct labor hour = 14.38
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers