Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $1.70 per direct labor0hour; the budgeted fixed factory overhead is $116,00 per month, of which $30,000 is factory depreciation. If the budgeted direct labor time for November is 7,000, then the total budgeted cash disbursements for November must be:
This is also known as a cash payment. The cash payment refers to the payment made by the corporations by cash, electronically, checks etc to another party in a specific time period.
Answer and Explanation:
Budgeted fixed overhead ( Cash ) = Total fixed overhead - Noncash fixed overhead ( Depreciation)
= 116000-30000 i.e 86000
Variable overhead rate =...
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from Finance 101: Principles of FinanceChapter 18 / Lesson 4