Harrison Manufacturing's overhead budget is based on budgeted direct labor-hours. The direct labor budget shows 3,200 direct labor-hours will be needed in March. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $45,600 per month, including depreciation of $4,200. All other fixed manufacturing overhead costs represent current cash flows. What should be the March cash disbursements for manufacturing overhead? a. $71,200 b. $67,000 c. $25,600 d. $41,400

Harrison Manufacturing's overhead budget is based on budgeted direct labor-hours. The direct labor budget shows 3,200 direct labor-hours will be needed in March. The variable overhead rate is $8 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $45,600 per month, including depreciation of $4,200. All other fixed manufacturing overhead costs represent current cash flows. What should be the March cash disbursements for manufacturing overhead? a. $71,200 b. $67,000 c. $25,600 d. $41,400

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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