Companys overhead budget is based on budgeted direct labor hours. The direct labor budget is 4,000 direct labor hours that will be required in the month. Variable overhead rate is $2.00 per direct hour. The overall budgeted fixed manufacturing overhead is $70,000 per month which includes $20,000 of depreciation. All other fixed costs represent current cash flows.
Determine the cash disbursements for this given month. Put all calculations in excel.
Determine the predetermined overhead rate for the given month. Put all calculations in excel.