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Help Seve &Exit; The Charade Corporation is preparing its Manufacturing Overhead

ID: 2508789 • Letter: H

Question

Help Seve &Exit; The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted varable is factory depreciation. If the budgeted direct labor time for December is 8,000 hours, then average budgeted manufacturing overhead per direct labor-hour is manufacturing overhead is $5.00 per direct labor-hour, the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 closest to: Multiple Choice $14.38 per direct labor-hour $9.38 per direct labor-hour $12.50 per direct labor-hour Prey 3 of 10E Next

Explanation / Answer

Answer is $14.38 per labour hour Explanation: Budgeted fixed overheads: $ 75,000 Budgeted Labouor hours: 8000 hours Budgeted Fixed OH per hour: ($75000 /8000 hours) : $ 9.375 per labour hour Budgeted variable OH per hour: $ 5.00 per labour hour Budgeted Manufacturing Oh (9.375+5.00)= 14.38 per labour hour