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Problem
The manufacturing overhead budget of Myers Industries is based on budgeted direct labor-hours. The October 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 October. Please use all possible calculations in Excel.
b. Determine the predetermined overhead rate for October. Please use all possible calculations in Excel. Please do it in Excel Sheet.
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