Answer:
the total budgeted factory overhead for November is : 2) $110,000.
the budgeted direct labor hours for December must be : 3) 9,000 hours.
total budgeted factory overhead per direct labor hour is : 1) $14.38
Explanation:
To determine the budgeted factory overhead for November, prepare a budgeted factory overhead for November as follows :
<u>November</u>
Budgeted Variable factory overhead ($5.00 × 7,000 hours) = $35,000
Budgeted Fixed factory overhead = $75,000
Total budgeted factory overhead = $110,000
<u>December</u>
Total Cash Disbursements = $105,000
Less Budgeted Fixed factory overhead ($75,000 - $15,000) = $60,000
Budgeted Variable factory overhead = $45,000
Therefore, budgeted direct labor hours = $45,000 / $5.00
= 9,000 hours.
<u>December</u>
Budgeted Variable factory overhead ($5.00 × 8,000 hours) = $40,000
Budgeted Fixed factory overhead = $75,000
Total budgeted factory overhead = $115,000
Therefore, total budgeted factory overhead per direct labor hour = $115,000 / 8,000 hours = $14.375
Which is $14.38 (rounded)
