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The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:The company's variable manufacturing overhead rate is 3.25 per direct labor-hour and the company's fixed manufacturing overhead is 48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is 16,000 per quarter.
(b) Compute the company's manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.

Respuesta :

abhaydwive123

Manufacturing overhead rate = Budgeted Manufacturing overheads/Total direct labor hours

= 297,625/32,500

= $9.16 per direct labor hour.

Manufacturing is the process of processing raw materials into products of higher value and then manufacturing them in large quantities. For example, paper is made from wood, sugar is made from sugar cane, steel is made from iron ore, and aluminum is made from bauxite. Primary products are manufactured and become final products.

Manufacturing is defined as creating new products from raw materials or parts. Examples of manufacturing industries include car companies, bakeries, shoe stores, and tailors. They do not manufacture products or provide services.

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