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The Charade Company Is Preparing Its Manufacturing Overhead Budget for the Fourth

Question 135

Multiple Choice

The Charade Company is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable factory overhead is $5.00 per direct labor-hour; the budgeted fixed factory overhead is $75,000 per month, of which $15,000 is factory depreciation.
-If the budgeted cash disbursements for factory overhead for December total $105,000, then the budgeted direct labor-hours for December must be:


A) 6,000 hours
B) 21,000 hours
C) 9,000 hours
D) 3,000 hours

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