Davis Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 128

Multiple Choice

Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for October is 8,000 hours, then the total budgeted manufacturing overhead for October is:

• A) $129,600
• B) $43,600
• C) $99,600
• D) $86,000

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Definitions:

Directional Stability Control

A vehicle safety system that helps maintain the vehicle's intended direction of travel, typically under adverse conditions.

Dividends

Shares of profit paid out by a corporation to its stockholders, generally originating from the company’s revenue.

Total Percentage

Total Percentage typically refers to a complete or whole percentage value calculated from the sum or integration of individual percentage values.

Selling Price

The amount of money for which a product or service is sold in the market.