The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5 per direct labor-hour; the budgeted fixed manufacturing overhead is $90,000 per month, of which $16,500 is factory depreciation. If the budgeted direct labor time for November is 8,500 hours, then the total budgeted manufacturing overhead for November is:

Question

Alonzo Roth

Business

8 November, 10:19

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5 per direct labor-hour; the budgeted fixed manufacturing overhead is $90,000 per month, of which $16,500 is factory depreciation. If the budgeted direct labor time for November is 8,500 hours, then the total budgeted manufacturing overhead for November is:

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Bailey · Answer 1

The total budgeted manufacturing overhead for November is $125,000

Explanation:

The total budgeted manufacturing overhead for November comprises of the budgeted variable manufacturing overhead of $5 per direct labor (where total labor hours are 8,500) plus the budgeted fixed manufacturing overhead of $90,000 for the month.

Budgeted variable manufacturing overhead ($5*8500) $35,000

Budgeted fixed manufacturing overhead $90,000

Total budgeted manufacturing overhead for November $125,000

The overhead projected to be incurred in November is $125,000