The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $5.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $75,000 per month, of which $15,000 is factory depreciation.If the budgeted direct labor time for November is 7,000 hours, then the total budgeted manufacturing overhead for November is:

Question

Quizplus · Accepted Answer

First, calculate the total budgeted fixed manufacturing overhead by subtracting the factory depreciation from the total fixed manufacturing overhead:

$75,000 - $15,000 = $60,000

Next, multiply the budgeted variable manufacturing overhead rate by the budgeted direct labor hours:

$5.00 x 7,000 = $35,000

Finally, add the total budgeted fixed manufacturing overhead to the total budgeted variable manufacturing overhead:

$60,000 + $35,000 = $95,000

Therefore, the total budgeted manufacturing overhead for November is $95,000, which is answer choice B.

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