QUESTION 13

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,300 direct labor-hours will be required in May. The variable overhead rate is $9.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,020 per month, which includes depreciation of $18,210. All other fixed manufacturing overhead costs represent current cash flows.

The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be:

	A.	$9.90
	B.	$11.40
	C.	$19.00
	D.	$21.30

7 points

QUESTION 14

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts total $177,000 and budgeted cash disbursements total $176,000. The desired ending cash balance is $45,000. The excess (deficiency) of cash available over disbursements for June will be:

	A.	$15,000
	B.	$1,000
	C.	$17,000
	D.	$193,000