The manufacturing overhead budget of Waverly Corporation is based on budgeted direct labor-hours.The June direct labor budget indicates that 5,800 direct labor-hours will be required in that month.The variable overhead rate is $7.70 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $111,360 per month,which includes depreciation of $17,400.All other fixed manufacturing overhead costs represent current cash flows.Required:
a.Determine the cash disbursement for manufacturing overhead for June.Show your work!
b.Determine the predetermined overhead rate for June.Show your work!
Correct Answer:
Verified
b.
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