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Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate...

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Accounting

Cartier Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $39,930 per month, which includes depreciation of $12,870. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,300 direct labor-hours will be required in April. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for April should be: $14.00 $5.80 $17.90 $12.10

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