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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