The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicat
es that 7,000 direct labor-hours will be required in February. The variable overhead rate is $8.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $102,900 per month, which includes depreciation of $18,050. All other fixed manufacturing overhead costs represent current cash flows. The February cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
1 answer:
Answer:
Check the explanation
Explanation:
The February cash disbursements for manufacturing overhead on the manufacturing overhead budget <em><u>(which are records or executable plans that contains all the costs, other than labor cost and that of raw materials, which is expected to be incurred by a manufacturing firm or department during the period of a financial year.) </u></em>can be seen in the attached image below:
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Answer: $750,000
Explanation:
Given that,
Fixed price contract = $10,000,000
Cost incurred in the first year = $3,000,000
Remaining costs to complete = $5,000,000
Tullis billed = $4,000,000 in year 1
Collected by the end of the year = $3,500,000
Percentage of work completed =
=
= 37.5%
Revenue recognized = 37.5% of $10,000,000
= $3,750,000
Income recognized = Revenue recognized - Cost incurred in the first year
= $3,750,000 - $3,000,000
= $750,000