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The manufacturing overhead budget at Pendley Corporation is based on budgeted direct labor-hours. The direct...

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Accounting

The manufacturing overhead budget at Pendley Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,000 direct labor-hours will be required in August. The variable overhead rate is $7.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $138,600 per month, which includes depreciation of $24,870. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be: $27.30 $23.80 $7.50 $19.80

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