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 cash disbursements for manufacturing overhead for December total $105,000, then the budgeted direct labor-hours for December must be:

Question

Quizplus · Accepted Answer

Total budgeted fixed manufacturing overhead = $75,000 - $15,000 = $60,000
Budgeted variable manufacturing overhead per direct labor-hour = $5.00

Let x be the budgeted direct labor-hours for December.
Then, the budgeted manufacturing overhead for December can be calculated as:
$60,000 + ($5.00 * x) = $105,000
Solving for x, we get:
x = 9,000 direct labor-hours

Therefore, the best choice is C, 9,000 direct labor-hours.

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