Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-If the budgeted direct labor time for December is 8,000 hours,then average budgeted manufacturing overhead per direct labor-hour is closest to:

A) $14.38 per direct labor-hour
B) $9.38 per direct labor-hour
C) $12.50 per direct labor-hour
D) $16.25 per direct labor-hour

Correct Answer:

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