FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget
indicates that 5 direct labor-hours will be required in that month. The variable overhead rate is $4.7 per direct labor-hour. The
company's budgeted fixed manufacturing overhead is $82,610 per month, which includes depreciation of $17,070. All other fixed
manufacturing overhead costs represent current cash flows.
Required:
1. Determine the cash disbursements for manufacturing overhead for February
2. Determine the predetermined overhead rate for February.
Note: Round your answer to 2 decimal places.
1. Cash disbursements for manufacturing overhead
2. Predetermined overhead rate
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- A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost PoolBudgeted Cost Product AProduct BProduct Activity 1 7,500 10,500 21,500 Activity 2 8,500 16,500 9,500 Activity 3 4,000 2,500 3,125 How much overhead will be assigned to Product B using activity-based costing? 85,000 60,000 112,000arrow_forwardWhat does a manufacturing overhead budget tell us?arrow_forwardWhat term refers to a grouping of costs that consists of direct labor and factory overhead costs and is considered to be the cost of converting the materials into a finished product? Group of answer choices prime costs conversion costs allocation costs just-in-time costsarrow_forward
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