The manufacturing overhead budget at Rotring Corporation is based on budgeted direct labor-hours. The direct...
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The manufacturing overhead budget at Rotring Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,800 direct labor-hours will be required in September. The variable overhead rate is $7.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $43,120 per month, which includes depreciation of $3,640. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Manufacturing Overhead Budget:
|
| September |
| Budgeted direct labor-hours |
|
| Variable manufacturing overhead rate |
|
| Variable manufacturing overhead |
|
| Fixed manufacturing overhead |
|
| Total manufacturing overhead |
|
| Depreciation |
|
| Cash disbursement for manufacturing overhead |
|
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