Based on budgeted direct labor-hours

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Reference no: EM131265899

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,600 direct labor-hours will be required in August. The variable overhead rate is $7.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $147,440 per month, which includes depreciation of $24,920. 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) $27.20

b) $23.70

c) $7.80

d) $19.40

Reference no: EM131265899

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