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Determine the predetermined overhead rate for november

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Reference no: EM13510089

Gokey Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $5.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $78,840 per month, which includes depreciation of $20,520. All other fixed manufacturing overhead costs represent current cash flows. The November direct labor budget indicates that 5,400 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: EM13510089

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