Question
Edgington 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
Edgington 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 $110,400 per month, which includes depreciation of $19,770. All other fixed manufacturing overhead costs represent current cash flows. The November direct labor budget indicates that 9,200 direct labor-hours will be required in that month.
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Required: |
a. | Determine the cash disbursement for manufacturing overhead for November. |
b. | Determine the predetermined overhead rate for November. (Round your answer to 2 decimal places.) |
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