A company bases its manufacturing overhead budget on budgeted direct labor hours. The variable overhead rate is $9.50 per direct labor hour. The company's budgeted fixed manufacturing overhead is $120,500 per month, which includes depreciation of $10,200. The January direct labor budget indicates that 7,200 direct labor hours will be required in that month. a. Determine the cash disbursements for manufacturing overhead for January. b. The company determines its predetermined overhead rate at the end of the month. Determine the predetermined overhead rate for January, rounded to the nearest penny.
A company bases its manufacturing overhead budget on budgeted direct labor hours. The variable overhead rate is $9.50 per direct labor hour. The company's budgeted fixed manufacturing overhead is $120,500 per month, which includes depreciation of $10,200. The January direct labor budget indicates that 7,200 direct labor hours will be required in that month. a. Determine the cash disbursements for manufacturing overhead for January. b. The company determines its predetermined overhead rate at the end of the month. Determine the predetermined overhead rate for January, rounded to the nearest penny.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...
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![A company bases its manufacturing overhead budget on budgeted direct labor hours. The variable overhead rate is $9.50 per direct labor hour. The company's
budgeted fixed manufacturing overhead is $120,500 per month, which includes depreciation of $10,200. The January direct labor budget indicates that
7,200 direct labor hours will be required in that month.
a. Determine the cash disbursements for manufacturing overhead for January.
b. The company determines its predetermined overhead rate at the end of the month. Determine the predetermined overhead rate for January, rounded to the
nearest penny.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d083fe1-38cc-4a45-b267-900e30c80760%2Ff49d386f-8ed5-4c9e-b2d0-23bb59712c7a%2Fqme2vsa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company bases its manufacturing overhead budget on budgeted direct labor hours. The variable overhead rate is $9.50 per direct labor hour. The company's
budgeted fixed manufacturing overhead is $120,500 per month, which includes depreciation of $10,200. The January direct labor budget indicates that
7,200 direct labor hours will be required in that month.
a. Determine the cash disbursements for manufacturing overhead for January.
b. The company determines its predetermined overhead rate at the end of the month. Determine the predetermined overhead rate for January, rounded to the
nearest penny.
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