
-Brockney Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The variable overhead rate is $8.60 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $107,970 per month,which includes depreciation of $9,760.All other fixed manufacturing overhead costs represent current cash flows.The July direct labor budget indicates that 6,100 direct labor-hours will be required in that month.
Required:
a.Determine the cash disbursements for manufacturing overhead for July.
b.Determine the predetermined overhead rate for July.
Correct Answer:
Verified
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