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MatroZZZ [7]
3 years ago
12

Irwin Company has budgeted direct labor hours for the coming three months as follows: July, 6,500 hours; August, 8,100 hours; an

d September, 8,300 hours. Manufacturing overhead is budgeted at $13,300 per month plus $3.30 per direct labor hour. What is the budgeted manufacturing overhead for August
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

the  budgeted manufacturing overhead for August is $40,030

Explanation:

The computation of the budgeted manufacturing overhead for August is shown below:

= Budgeted manufacturing overhead + direct labor hour rate × direct labor hours for august

= $13,300 + $3.30 × 8,100 hours

= $13,300 + $26,730

= $40,030

Hence, the  budgeted manufacturing overhead for August is $40,030

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Direct materials                                    $7.00

Handling                                               $2.80          ($3,500/5,000*4 parts)

Assembling                                           $9.60          ($12,000/5,000*4 parts)

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Total manufacturing cost per chair   <u>$37.80</u>

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