Irwin Company has budgeted direct labor hours for the coming three months as follows: July, 6,500 hours; August, 8,100 hours; and September, 8,300 hours. Manufacturing overhead is budgeted at $13,300 per month plus $3.30 per direct labor hour. What is the budgeted manufacturing overhead for August

the  budgeted manufacturing overhead for August is $40,030

Explanation:

The computation of the budgeted manufacturing overhead for August is shown below:

= Budgeted manufacturing overhead + direct labor hour rate × direct labor hours for august

= $13,300 + $3.30 × 8,100 hours

= $13,300 + $26,730

= $40,030

Hence, the  budgeted manufacturing overhead for August is $40,030

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