t20

The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5 per direct labor-hour; the budgeted fixed manufacturing overhead is $85,000 per month, of which $16,000 is factory depreciation.

If the budgeted direct labor time for November is 8,000 hours, then the total budgeted manufacturing overhead for November is:

Multiple Choice

• $109,000

• $125,000

• $85,000

• $141,000