92 Swifty Corporation is planning to sell 600 boxes of ceramic tile, with produc

Question

92 Swifty Corporation is planning to sell 600 boxes of ceramic tile, with production estimated at 770 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.50 hour of direct labor. Clay mix costs S 40 per pound and employees of the company are paid $18 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Swifty has 4600 pounds of clay mix in beginning inventory and wants to have 5000 pounds in ending inventory What is the total amount to be budgeted for overhead for the month? O $5940 O $30492 O $23760 O $7623 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Direct labour cost = 770*.50*18 = 6930

Budgeted manufacturing overhead = 6930*110% = $7623

So answer is d) $7623

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.