Latronica Corporation: calculate predetermined overhead rate

$4.00$2.00925 reads

Question

 

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,800 direct labor-hours will be required in August. The variable overhead rate is $7.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $138,720 per month, which includes depreciation of $24,890. 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:

a. $27.70

b. $24.20

c. $7.30

d. $20.40

 

Add to Cart