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bulgar [2K]
3 years ago
7

Edison Corporation’s variable manufacturing overhead rate is $5.00 per direct labor hour. Budgeted direct labor cost is $20 per

hour. Total budgeted fixed overhead is $25,000 per month. Total budgeted direct labor hours for the month of July are 20,000. Total budgeted manufacturing overhead for July is ______.
Business
1 answer:
Sonbull [250]3 years ago
4 0

Answer:

$125,000

Explanation:

Given that,

Variable manufacturing overhead rate = $5.00 per direct labor hour

Budgeted direct labor cost = $20 per hour

Total budgeted fixed overhead = $25,000 per month

Total budgeted direct labor hours = 20,000

Total budgeted manufacturing overhead for July:

= Variable manufacturing overhead + Fixed manufacturing overhead

= (Budgeted direct labor hours × Variable overhead rate) + $25,000

= (20,000 × $5) + $25,000

= $100,000 + $25,000

= $125,000

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