#5

Ross Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $7.75 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $265,000 per month, which includes depreciation of $71,000. All other fixed manufacturing overhead costs represent current cash flows. The September direct labor budget indicates that 8,210 direct labor-hours will be required in that month. Required: a. Determine the cash disbursement for manufacturing overhead for September. b. Determine the predetermined overhead rate for September.

Ross Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $7.75 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $265,000 per month, which includes depreciation of $71,000. All other fixed manufacturing overhead costs represent current cash flows. The September direct labor budget indicates that 8,210 direct labor-hours will be required in that month. Required: a. Determine the cash disbursement for manufacturing overhead for September. b. Determine the predetermined overhead rate for September