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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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