Question

TB MC Qu. 8-187 The Charade Corporation is preparing its ... 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 $95,000 per month, of which $17,000 is factory depreciation. If the budgeted direct labor time for November is 9,000 hours, then the total budgeted manufacturing overhead for November is:

Answer 1

Allocated MOH= 140,000

Step-by-step explanation:

Giving the following information:

The budgeted variable manufacturing overhead is $5 per direct labor-hour

The budgeted fixed manufacturing overhead is $95,000 per mont

The budgeted direct labor time for November is 9,000 hours

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= (5*9,000) + 95,000

Allocated MOH= 140,000