The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $6 per direct labor-hour; the budgeted fixed manufacturing overhead is $91,000 per month, of which $16,600 is factory depreciation. If the budgeted direct labor time for November is 8,600 hours, then the total budgeted manufacturing overhead for November is:

the total budgeted manufacturing overhead for November is: $142,600

Explanation:

Consider BOTH the variable and fixed manufacturing overheads

Calculation of total budgeted manufacturing overhead for November

variable manufacturing overhead  ($6 × 8,600 hours)     $51,600

fixed manufacturing overhead is                                        $91,000

total                                                                                      $142,600

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