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4 October, 17:46

Mccoo Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $93,240 per month, which includes depreciation of $19,830. All other fixed manufacturing overhead costs represent current cash flows. The September direct labor budget indicates that 8,400 direct labor-hours will be required in that month. Required:a. Determine the cash disbursement for manufacturing overhead for September. (Omit the "$" sign in your response.) Cash disbursement for manufacturing overhead $ b. Determine the predetermined overhead rate for September. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Predetermined overhead rate $

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  1. 4 October, 20:43
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    (a). $86,010

    (b). $12.6

    Explanation:

    According to the scenario, computation of the given data are as follow:-

    a). Cash Disbursement for Manufacturing Overhead for September = (Direct Labor Hours * Variable Overhead Rate Per Direct Labor - Hour) + (Fixed Manufacturing Overhead - Depreciation)

    = (8,400 * $1.5) + ($93,240 - $19,830)

    = $12,600 + $73,410

    = $86,010

    b). Predetermined Overhead Rate for September = (Fixed Manufacturing Overhead : Direct Labor Hour) + Variable Overhead Rate Per Direct Labor Hour

    = ($93,240 : 8,400) + $1.5

    = $11.1 + $1.5

    = $12.6
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