The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation
-If the budgeted direct labor time for December is 4,000 hours, then the average budgeted manufacturing overhead per direct labor-hour is:

Question

Quizplus · Accepted Answer

To calculate the average budgeted manufacturing overhead per direct labor-hour, we need to divide the total budgeted manufacturing overhead by the budgeted direct labor-hours. The question only provides us with the budgeted direct labor-time for December, but not the total budgeted manufacturing overhead. Without the total budgeted manufacturing overhead amount, we cannot calculate the average budgeted manufacturing overhead per direct labor-hour. Therefore, we cannot choose any of the answer choices provided.

The Covey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth