Aurora Mechanical Inc. is preparing its manufacturing overhead budget for the second quarter. The budgeted variable factory overhead is $6.40 per direct labor-hour; the budgeted fixed factory overhead is $85,000 per month, of which $16,000 is factory depreciation. If the budgeted direct labor time for May is 8,600 hours, then what is the total budgeted factory overhead for May?

Aurora Mechanical Inc. is preparing its manufacturing overhead budget for the second quarter. The budgeted variable factory overhead is $6.40 per direct labor-hour; the budgeted fixed factory overhead is $85,000 per month, of which $16,000 is factory depreciation. If the budgeted direct labor time for May is 8,600 hours, then what is the total budgeted factory overhead for May?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 14E: Calculating factory overhead The normal capacity of a factory is 10,000 units per month. Cost and...

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