Budgeted variable factory overhead rate

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Reference no: EM13122511

Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which $16,000 is factory depreciation.

If the budgeted direct labor time for December is 4,000 hours, then the predetermined factory overhead per direct labor-hour for December would be:

a) $6.00

b) $29.00

c) $25.00

d) $10.00

Reference no: EM13122511

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