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

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 direct labor time for December is 8,000 hours, then total budgeted factory overhead per direct labor-hour is (rounded) :

A) $14.38
B) $9.38
C) $12.50
D) $16.25

Correct Answer:

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