Memorsave Inc. makes and sells picture frames. Budgeted direct labour hours for July to September of the

Question:

Memorsave Inc. makes and sells picture frames. Budgeted direct labour hours for July to September of the coming year are:

July 
15,200
August 
16,350
September 
17,100

The variable overhead rate is $0.60 per direct labour hour; fixed overhead is budgeted at $2,820 per month.


Required:

Prepare an overhead budget for the manths of July, August, and September, as well as the total for the quarter.

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Cornerstones of Managerial Accounting

ISBN: 978-0176721237

3rd Canadian edition

Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman

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