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For May and June, find: Total Manufacturing Overhead Costs Cash Disbursements for Overhead PLEASE SHOW ALL WORK Manufacturing Overhead Budget At Royal manufacturing overhead is
- For May and June, find:
- Total Manufacturing Overhead Costs
- Cash Disbursements for Overhead
PLEASE SHOW ALL WORK
Manufacturing Overhead Budget At Royal manufacturing overhead is applied to units of product on the basis of direct labor hours. The variable manufacturing overhead rate is $20 per direct labor hour. Fixed manufacturing overhead is $50,000 per month and includes $20,000 of noncash costs (primarily depreciation of plant assets). April Variable MOH - 1,300 direct labor hours * $20-$26,000 April Fixed MOH-$50,000 April Total MOH-$26,000+ $50,000-$76,000 NOTE: Cash Disbursements will be $56,000 because of the $20,000 noncash costs Repeat Process in May, June Royal's manufacturing overhead budget. This budget provides a schedule of all costs of production other than direct materials and direct labor. Royal applies overhead on the basis of direct labor hours. The variable manufacturing overhead rate is $20 per direct labor hour. The fixed overhead is $50,000 per month, of which $20,000 is noncash costs, primarily depreciation on the factory assetsStep by Step Solution
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