
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Homework problem #5:
Chap
0 moldong rowemoll
Probe Corporation is preparing its manufacturing overhead budget. The company uses directo
labor-hours as its overhead allocation base. The direct labor budget for the upcoming quarter is
as follows:
Budgeted direct labor-hours
April
490
May
770
June
660
The company's variable manufacturing overhead rate is $1.60 per direct labor hour and the
company's fixed manufacturing overhead is $3,000 per month. The only noncash item included
per month.
in fixed manufacturing overhead is depreciation, which is $600
Prepare the company's manufacturing overhead budget for the upcoming fiscal year.
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