The Covey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 91

Multiple Choice

The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation. If the budgeted cash disbursements for manufacturing overhead for November are $90,000, then the budgeted direct labor-hours for November must be:

• A)11,000 direct labor-hours
• B)22,500 direct labor-hours
• C)6,500 direct labor-hours
• D)2,000 direct labor-hours

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