20 October, 17:12

Brockney Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is \$1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is \$113,460 per month, which includes depreciation of \$19,760. A other fixed manufacturing overhead costs represent current cash flows. The July direct labor budget indicates that 9,300 direct labor - hours will be required in that month. Required 1. Determine the cash disbursements for manufacturing overhead for July ermine the predetermined overhead rate for July. (Round your answer to 2 decimal places.) ts for manufa overhead

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1. 20 October, 20:14
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1. \$106,720

2. \$13.60

Explanation:

1. In order for us to determine cash disbursements for manufacturing overhead, we must exclude all non-cash relating expense. In this scenario we have depreciation expense in the amount of \$19,760 that should be deducted first to the fixed manufacturing overhead.

\$113,460-\$19,760 = \$93,700 expenses that requires an outflow of cash.

Then, we can compute the month of July's manufacturing overhead cash disbursement.

Variable overhead (9,300 x \$1.40) \$13,020

2. Overhead rate is equals to