Question

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year....

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $7 per direct labor-hour; the budgeted fixed manufacturing overhead is $92,000 per month, of which $16,700 is factory depreciation.

If the budgeted direct labor time for November is 8,700 hours, then the total budgeted manufacturing overhead for November is:

Multiple Choice

  • $92,000

  • $136,200

  • $152,900

  • $169,600

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Answer #1

Calculate total budgeted manufacturing overhead

November
Variable manufacturing overhead (8700*7) 60900
Fixed manufacturing overhead 92000
Total Budgeted manufacturing overhead 152900

So answer is c) $152900

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