Total budgeted factory overhead
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Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is 3.00 per direct labor-hour; the budgeted fixed factory overhead is 66,000 per month, of which 10,000 is factory depreciation.
Reference: 9-14
If the budgeted direct labor time for October is 6,000 hours, then the total budgeted factory overhead for October is:
84,000
74,000
56,000
28,000
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This provides the steps to calculate the total budgeted factory overhead
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