Financial Accounting Question Solution The manufacturing overhead budget at Cutchin Corporation is based onbudgeted direct labor hours. The direct labor budget indicates that 3,200direct labor hours will be required in September. The variable overhead rate is$7 per direct labor hour. The company's budgeted fixed manufacturingoverhead is $43,160 per month, which includes a depreciation of $3,600. Allother fixed manufacturing overhead costs represent current cash flows.The September cash disbursements for manufacturing overhead on themanufacturing overhead budget should be:A. $22,400B. $39,560C. $61,960D. $65,560

Step 1: Define Manufacturing Overhead:Manufacturing overhead represents the indirect production cost…

Answered: The manufacturing overhead budget at…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1BE: At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and...

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At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
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