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:

Answer 1

Answer:

The total budgeted manufacturing overhead for November is $125,000

Explanation:

The total budgeted manufacturing overhead for November comprises of the budgeted variable manufacturing overhead of $5 per direct labor(where total labor hours are 8,500) plus the budgeted fixed manufacturing overhead of $90,000 for the month.

Budgeted variable manufacturing overhead($5*8500)        $35,000

Budgeted fixed manufacturing overhead                               $90,000

Total budgeted manufacturing overhead for November       $125,000

The overhead projected to be incurred in November is $125,000

Answer 2

Answer:

$132,500

Explanation:

Overhead are all the indirect expense of the business. Manufacturing overhead are all the indirect expenses which incurred for the manufacturing purpose of the product. All the variable and fixed indirect costs are included in it e.g indirect material, utilities etc.

Manufacturing Overhead

Variable manufacturing overhead ($5 x 8,500)   $42,500

Fixed manufacturing overhead                             $90,000

Total manufacturing overhead cost                     $132,500