The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in February. The variable overhead rate is $9.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,400 per month, which includes depreciation of $18,180. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be: Multiple Choice $14.30 per direct labor-hour $9.60 per direct labor-hour $21.60 per direct labor-hour $23.90 per direct labor-hour
The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 8,000 direct labor-hours will be required in February. The variable overhead rate is $9.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,400 per month, which includes depreciation of $18,180. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be: Multiple Choice $14.30 per direct labor-hour $9.60 per direct labor-hour $21.60 per direct labor-hour $23.90 per direct labor-hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours, The direct labor budget indicates that 8,000 direct labor-hours will be required in February. The variable overhead
rate is $9.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114.400 per month, which includes depreciation of $18,180. All other fixed manufacturing overhead costs represent current
cash flows.
The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be:
Multiple Choice
$14.30 per direct labor-hour
$9.60 per direct labor-hour
$21.60 per direct labor-hour
$23.90 per direct labor-hour
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