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Business, 30.03.2020 21:10 jhonpiper

The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,300 direct labor-hours will be required in May. The variable overhead rate is $7.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $147,460 per month, which includes depreciation of $24,890. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be:

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