Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-If the budgeted direct labor time for November is 7,000 hours,then the total budgeted manufacturing overhead for November is:

Question

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
  At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-If the budgeted direct labor time for November is 7,000 hours,then the total budgeted manufacturing overhead for November is:

Quizplus · Accepted Answer

Budgeted manufacturing overhead = $75,000 + ($5.00 per direct labor-hour × 7,000 direct labor-hours)
= $75,000 + $35,000 = $110,000

Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases