Dano Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,200 per month, which includes depreciation of $28,880. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 7,600 direct labor-hours will be required in December.

a. The December cash disbursements for manufacturing overhead on the manufacturing overhead budget should be (please solve it in the table below):

Budgeted direct labor-hours:

Variable overhead rate:

Variable manufacturing overhead:

Fixed manufacturing overhead:

Total manufacturing overhead:

Less non-cash expenses:

Total cash disbursements for December:

b. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for December should be (please solve it in the table below):

Budgeted direct labor-hours:

Variable overhead rate:

Variable manufacturing overhead:

Fixed manufacturing overhead:

Total manufacturing overhead:

Divide by number of direct labour-hours

Per direct labor-hour budgeted overhead cost:

Answer text

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