Determine the predetermined overhead rate

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Reference no: EM13823919

The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that month. The variable overhead rate is $2.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $79,200 per month, which includes depreciation of $21,000. All other fixed manufacturing overhead costs represent current cash flows.

Required:

A. Determine the cash disbursements for manufacturing overhead for November.

B. Determine the predetermined overhead rate for November.

Reference no: EM13823919

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