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The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $8 per direct labor-hour; the budgeted fixed manufacturing overhead is $83,000 per month, of which $15,800 is factory depreciation.
Required:
1. If the budgeted direct labor time for November is 7,800 hours, then the total budgeted manufacturing overhead for November is ___________.

Respuesta :

Answer:

$145,400

Explanation:

The total budgeted manufacturing overhead is the sum of the fixed and variable overhead costs for the period.

Given that the budgeted variable manufacturing overhead is $8 per direct labor-hour, it means that the budgeted variable overheads for a month is the product of $8 and the number of direct labor hours in the month.

The  total budgeted manufacturing overhead for November

= $8 * 7800 + $83,000

= $62,400 + $83,000

= $145,400

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