Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

question 131

Multiple Choice

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-If the budgeted direct labor time for December is 8,000 hours,then average budgeted manufacturing overhead per direct labor-hour is closest to:

• A) $14.38 per direct labor-hour
• B) $9.38 per direct labor-hour
• C) $12.50 per direct labor-hour
• D) $16.25 per direct labor-hour

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