Question

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:a) $95,000.
b) $110,000.
c) $75,000.
d) $125,000.

Answer 1

Answer:

The options are not correct;

Find below question as well:

The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year.

Budgeted variable factory overhead $5.00 per direct labor hour

Budgeted fixed factory overhead $75,000 per month, of which $15,000 is factory depreciation

Required:

1. If the budgeted direct labor time for November is 7,000 hours then the total budgeted factory overhead for November is:

a) $ 95,000.

b) $110,000.

c) $ 75,000.

d) $125,000.

The answer to your question is $132,500(not one of the options)

The answer to my question is $110,000,option B

Explanation:

The total manufacturing overhead is made of budgeted fixed manufacturing overhead of $90,000 and the budgeted variable manufacturing overhead of $5 per direct labor hour multiplied by budgeted direct labor hours of 8,500 hours.

Total manufacturing overhead=$90,000+($5*8500)

                                                  =$90,000+$42,500

                                                  =$132,500

Answer based on my question

Total manufacturing overhead=$75,000*($5*7000)

                                                  =$110,000

The correct option is B,$110,000