Mccoo Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The variable overhead rate is $1.30 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $98,900 per month,which includes depreciation of $19,780.All other fixed manufacturing overhead costs represent current cash flows.The September direct labor budget indicates that 8,600 direct labor-hours will be required in that month.
Required:
a.Determine the cash disbursement for manufacturing overhead for September.
b.Determine the predetermined overhead rate for September.

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The Answer of Mccoo Inc.bases its manufacturing overhead budget on budgeted direct labor-hours.The variable overhead rate is $1.30 per direct labor-hour.The company's budgeted fixed manufacturing overhead is $98,900 per month,which includes depreciation of $19,780.All other fixed manufacturing overhead costs represent current cash flows.The September direct labor budget indicates that 8,600 direct labor-hours will be required in that month.
Required:
a.Determine the cash disbursement for manufacturing overhead for September.
b.Determine the predetermined overhead rate for September.

Mccoo IncBases Its Manufacturing Overhead Budget on Budgeted Direct Labor-Hours