The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable factory overhead is $5.00 per direct labor-hour; the budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation.
-If the budgeted direct labor time for November is 7,000 hours, then the total budgeted factory overhead for November is:

Question

Quizplus · Accepted Answer

To calculate the total budgeted factory overhead for November, we need to add the budgeted variable factory overhead and the budgeted fixed factory overhead.

The budgeted variable factory overhead is $5.00 per direct labor-hour, and the budgeted direct labor hours for November is 7,000. So, the budgeted variable factory overhead for November is:

$5.00/direct labor-hour x 7,000 direct labor-hours = $35,000

The budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation. So, the remaining fixed factory overhead for November is:

$75,000 - $15,000 = $60,000

Therefore, the total budgeted factory overhead for November is:

$35,000 (budgeted variable factory overhead) + $60,000 (budgeted fixed factory overhead) = $95,000

The correct answer is B) $110,000.

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