The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 6,600 direct labor-hours will be required in August. The variable overhead rate is $7.10 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $138,600 per month, which includes depreciation of $24,910. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:
A)28.10
B)24.60
C)21.00
D)7.10
2. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.3 hours of direct labor at the rate of $19.00 per direct labor-hour.
The company plans to sell 42,000 units of Product WZ in June. The finished goods inventories on June 1 and June 30 are budgeted to be 640 and 140 units, respectively. Budgeted direct labor costs for June would be: *(Do not round intermediate calculations.)*
A)$1,813,550
B) $1,832,300
C)$1,851,050
D)$790,500
3. Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.70 direct labor-hours. The direct labor rate is $10.60 per direct labor-hour. The production budget calls for producing 7,600 units in October and 7,400 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months?
A)$112,996.00
B)$114,480.00
C)$116,176.00
D)$111,300.00
4. Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,500 direct labor-hours will be required in May. The variable overhead rate is $1.40 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $100,480 per month, which includes depreciation of $8,870. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be
A)$103,510
B)$112,380
C)$11,900
D)$91,610
5.The manufacturing overhead budget at Cutchin Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 2,600 direct labor-hours will be required in September. The variable overhead rate is $7 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $43,100 per month, which includes depreciation of $3,660. All other fixed manufacturing overhead costs represent current cash flows. The September cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A)$57,640
B)$61,300
C)$18,200
D)$39,440
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