Determine the predetermined overhead rate for November

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Problem - Edgington Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $111,800 per month, which includes depreciation of $19,650. All other fixed manufacturing overhead costs represent current cash flows. The November direct labor budget indicates that 8,600 direct labor-hours will be required in that month.

Required -

a. Determine the cash disbursement for manufacturing overhead for November.

b. Determine the predetermined overhead rate for November.

Reference no: EM132886099

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