Question
How do I calculate this. Question #3. Ross Inc. bases its manufactering overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 6,300
How do I calculate this. Question #3.
Ross Inc. bases its manufactering overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 6,300 direct labor-hours will be required in July. The variable overhead rate is $2.000 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $110,000 per month, which includes depreciation of $9,500. All other fixed manufacturing overhead costs represent current cash flows. The July cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Budgeted direct labor hours 6,300); Variable manufacturing overhead rate ($2.00); Variable manufacturing overhead ($12,600); Fixed manufacturing overhead (110,000); Total manufacturing overhead (122,600); Less depreciation (9,500); Cash disbursement for manufacturing overhead ($113, 100). Please help. Thank you.
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