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22-04-2020
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The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $6 per direct labor-hour; the budgeted fixed manufacturing overhead is $91,000 per month, of which $16,600 is factory depreciation. If the budgeted direct labor time for November is 8,600 hours, then the total budgeted manufacturing overhead for November is:

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Answer:

the total budgeted manufacturing overhead for November is: $142,600

Explanation:

Consider BOTH the variable and fixed manufacturing overheads

Calculation of total budgeted manufacturing overhead for November

variable manufacturing overhead ($6 × 8,600 hours) $51,600

fixed manufacturing overhead is $91,000

total $142,600

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