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balandron [24]
3 years ago
7

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

tory overhead is $5.00 per direct labor hour; the budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation.
If the budgeted direct labor time for November is 7,000 hours, then the total budgeted factory overhead for November is:

1) $95,000.

2) $110,000.

3) $75,000.

4) $125,000.

If the budgeted cash disbursements for factory overhead for December total $105,000, then the budgeted direct labor hours for December must be:

1) 6,000 hours.

2) 21,000 hours.

3) 9,000 hours.

4) 3,000 hours.

If the budgeted direct labor time for December is 8,000 hours, then total budgeted factory overhead per direct labor hour is (rounded):

1) $14.38.

2) $9.38.

3) $12.50.

4) $16.25.
Business
1 answer:
In-s [12.5K]3 years ago
3 0

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)

                                                               

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