Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-ho

Question

Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,300 direct labor-hours will be required in August. The variable overhead rate is $1.20 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,460 per month, which includes depreciation of $8,890. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be

Explanation / Answer

Calculate august cash disbursement for manufacturing budget :

August Direct labour hour 8300 Variable overhead per hour 1.20 Variable manufacturing overhead 9960 Fixed manufacturing overhead 100460 Total manufacturing overhead 110420 Less : Depreciation -8890 Cash disbursement for manufacturing overhead 101530

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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