Question
4. Golebiewski Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct laborbudget indicates that 6,000 direct labor-hours will be required in November.
4. Golebiewski Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct laborbudget indicates that 6,000 direct labor-hours will be required in November. The variable overhead rate is$9.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $90,000 per month,which includes depreciation of $10,300. All other fixed manufacturing overhead costs represent current cashflows. The company recomputes its predetermined overhead rate every month. The predeterminedoverhead rate for November should be:
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