The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,700 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $42,990 per month, which includes depreciation of $3,770. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: a. $61,890 b. $18,900 c. $58,120 d. $39,220
The manufacturing overhead budget at Franklyn Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,700 direct labor-hours will be required in January. The variable overhead rate is $7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $42,990 per month, which includes depreciation of $3,770. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: a. $61,890 b. $18,900 c. $58,120 d. $39,220
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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
Transcribed Image Text:The manufacturing overhead budget at Franklyn Corporation is based on
budgeted direct labor-hours. The direct labor budget indicates that 2,700
direct labor-hours will be required in January. The variable overhead rate is
$7 per direct labor-hour. The company's budgeted fixed manufacturing
overhead is $42,990 per month, which includes depreciation of $3,770. All
other fixed manufacturing overhead costs represent current cash flows.
The January cash disbursements for manufacturing overhead on the
manufacturing overhead budget should be:
a. $61,890
b. $18,900
c. $58,120
d. $39,220
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