The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor...

 

Transcribed Image Text:

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in February. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $107,310 per month, which includes depreciation of $18,070. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be: O $23.30 per direct labor-hour O $21.00 per direct labor-hour $8.60 per direct labor-hour O $14.70 per direct labor-hour The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in February. The variable overhead rate is $8.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $107,310 per month, which includes depreciation of $18,070. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for February should be: O $23.30 per direct labor-hour O $21.00 per direct labor-hour $8.60 per direct labor-hour O $14.70 per direct labor-hour

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To calculate the predetermined overh... View the full answer