Invent Inc. bases its manufacturing overhead budget on budgeted direct labor hours. The direct labor budget indicates that 4,200 direct labor-hours will be required in November. The variable overhead rate is $6.45 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $35,900 per month, which includes depreciation of $6,800. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for November should be (round to 2 decimals):
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Invent Inc. bases its manufacturing
The predetermined overhead rate for November should be (round to 2 decimals):
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
