Question

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $7 per direct labor-hour; the budgeted fixed manufacturing overhead is $87,000 per month, of which $16,200 is factory depreciation. If the budgeted direct labor time for November is 8,200 hours, then the total budgeted manufacturing overhead for November is:

Answer 1

Answer:

See below

Explanation:

Given the above information, the total budget manufacturing overhead is computed as

= Variable factory overhead rate per direct labor hour × Budgeted direct labor time for November + Fixed factory overhead per month

= $7 × 8,200 + $87,000

= $57,400 + $87,000

= $144,000

Therefore, the total budgeted manufacturing overhead for November is $144,000