Question
Mccoo 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
Mccoo 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 $93,240 per month, which includes depreciation of $19,830. All other fixed manufacturing overhead costs represent current cash flows. The September direct labor budget indicates that 8,400 direct labor-hours will be required in that month. |
Required: |
a. | Determine the cash disbursement for manufacturing overhead for September. (Omit the "$" sign in your response.) |
Cash disbursement for manufacturing overhead | $ |
b. | Determine the predetermined overhead rate for September. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) |
Predetermined overhead rate | $ |
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