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Question - The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable factory overhead is $5.00 per direct labor hour; the budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation.
1. If the budgeted direct labor time for November is 7,000 hours, then determine the total budgeted factory overhead for November?
1) $95,000.
2) $110,000.
3) $75,000.
4) $125,000.
2. If the budgeted cash disbursements for factory overhead for December total $105,000, then determine the budgeted direct labor hours for December?
1) 6,000 hours.
2) 21,000 hours.
3) 9,000 hours.
4) 3,000 hours.
3. If the budgeted direct labor time for December is 8,000 hours, then determine total budgeted factory overhead per direct labor hour?
1) $14.38.
2) $9.38.
3) $12.50.
4) $16.25.
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