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The manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 6,000 direct labor-hours will be required in the current
The manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 6,000 direct labor-hours will be required in the current month. The variable overhead rate is $2.00 per direct labor-hour. The budgeted fixed manufacturing overhead is $79,200 per month, which includes depreciation of $21,000. All other fixed manufacturing overhead costs represent current cash flows.
What is the cash disbursements for manufacturing overhead costs for the month?
What is the predetermined overhead rate for the month?
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