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Marigold Corp. is planning to sell 600 boxes of ceramic tile, with production estimated at 880 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Marigold has 4300 pounds of clay mix in beginning inventory and wants to have 4800 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? O $40656 O $6930 O $27720 0 $10164

Marigold Corp. is planning to sell 600 boxes of ceramic tile, with production estimated at 880 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Marigold has 4300 pounds of clay mix in beginning inventory and wants to have 4800 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? O $40656 O $6930 O $27720 0 $10164

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marigold Corp. is planning to sell 600 boxes of ceramic tile, with production estimated at 880 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Marigold has 4300 pounds of clay mix in beginning inventory and wants to have 4800 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? O $40656 O $6930 O $27720 O $10164 Touthools and Media
Transcribed Image Text:Marigold Corp. is planning to sell 600 boxes of ceramic tile, with production estimated at 880 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $14 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Marigold has 4300 pounds of clay mix in beginning inventory and wants to have 4800 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? O $40656 O $6930 O $27720 O $10164 Touthools and Media
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